WHAT IS FAIRTAX?
The FairTax plan is a comprehensive proposal that replaces all federal income
and payroll based taxes with an integrated approach including a progressive
national retail sales tax, a prebate to ensure no American pays federal taxes
on spending up to the poverty level, dollar-for-dollar federal revenue
replacement, and, through companion legislation, the repeal of the
This non-partisan legislation (HR 25/S 1025) abolishes all federal
personal and corporate income taxes, gift, estate, capital gains, alternative
minimum, Social Security, Medicare, self-employment taxes and replaces
them with one simple, visible, federal retail sales tax administered
primarily by existing state sales tax authorities. The IRS is disbanded and
defunded. The FairTax taxes us only on what we choose to spend on new
goods or services, not on what we earn. The FairTax is a fair, efficient,
transparent, and intelligent solution to the and inequity of our current tax system.
FairTax produces the following:
It allows every worker to keep their entire pay check - no payroll or income taxes
It allows those at/below poverty level to have zero or negative taxes
It allows retirees to keep their full pension or Social Security checks - untaxed
It allows everyone to keep their capital gains and investment income - untaxed
It stimulates economic growth and job formation
It eliminates gift and inheritance taxes
It ends all personal and corporate income tax filings
It eliminates the IRS and frees $8 billion
Like all tax systems the FairTax can be confusing. This simple video gives the short and sweet of the FairTax so you can get a grasp on what it's all about.