Focus groups conducted on American citizens show that you want a tax system that provides simplicity, visibility, and fairness within a pro-growth plan. The FairTax achieves these objectives through:
Simplicity - One rate for everyone; no tax filings. This uniformity means all benefits, all regulations, all exceptions are applied to all citizens equally.
Visibility - The current cost of Big Government, as well as any change in the tax rate shows on every cash register receipt for a new good or service.
Fairness - It is progressive, protecting the poor through a tax rebate on the necessities of life; no loopholes, therefore, everyone pays the same rate on every purchase. However, those less able to pay will receive relief until their life situation changes.
Pro-growth - In order to grow the economy, large amounts of capital at reasonable interest rates must be available. There is no better way to insure large amounts of capital than to make all savings and investment totally tax free, both principal and interest earned (capital gains).
In addition, the 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 encourages savings and investment - creating greater national growth and
It encourages repatriation of wealth from tax havens, providing much needed capital
to fuel the growth of our own economy
It stimulates exports - leading to greater U.S. employment
It stimulates economic growth and job formation
It eliminates gift and inheritance taxes
It eliminates the IRS and frees $8 billion
It eliminates tax loopholes - no filings, no exemptions
It ends all personal and corporate income tax filings
It taxes spending of gifted and inherited wealth more fairly
It has lower cost of enforcement
It frees the $250 billion tax accounting/law industry for more productive employment