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 16th Amendment. This nonpartisan legislation (HR 25/S122) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and 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 frustration and inequity of our current tax system.
While Congress fumbles the ball on the economy by continuing to waste more tax dollars they don’t have to stimulate the economy. Ask yourself. If the Fair Tax is implemented and every worker in this country receives their full paycheck plus the planned prebate without any deductions, wouldn’t that be a tremendous stimulus to the economy? If every business never has to file another tax return and pay income taxes ever again, wouldn’t that be a tremendous stimulus? For more information www.fairtax.org or call 1-800-fairtax.