In a nutshell . . .
The FairTax replaces ALL Federal Income, Payroll (including Social Security and Medicare), Business, Self-employment, Estate and Gift taxes with a single 23%* consumption tax on NEW goods and services. It eliminates the IRS.
It provides a 'prebate' of this tax up to the poverty level, paid monthly to all families, so that no American citizen or legal resident pays any tax on basic necessities.
The elimination of all tax on businesses will spark an economic boom and bring trillions of dollers in investment and millions of jobs to America!
Here's Washington's idea of a stimulus plan: Borrow trillions of
dollars from the Chinese--plunging us all in endless debt for
years to come--to try and prop up our sagging economy today.
Folks, that's not a stimulus package, it's a shell game, and it's bad
news for all of us.
Please join us in convincing President Obama and Members of Congress
to support a REAL stimulus package: The FairTax...now!
Experts predict that trillions of foreign investments will rush into
the United States economy after enactment of the FairTax. With the
elimination of the corporate income tax as well as capital gains taxes
and personal income taxes and payroll taxes, the U.S. becomes the
"offshore tax haven" to the world. That means more "Made in America"
jobs, better benefits, economic growth and a rising sea that floats
all boats! Now that's a REAL stimulus plan!
It's time to change our thinking. It's time to change our economics.
It's time to change Washington. It's time for the FairTax.
Learn more about the FairTax
FairTax Calculator - FairTax versus Current Taxes
Links to PDF Documents (click to download)
NewNewDeal-03-13-07.pdf - Averting America's Bankruptcy with a New New Deal by Laurence J. Kotlikoff, Professor of Economics, Boston University
Links to Other Websites
Fair Tax Blog - many articles both positive and negative
Fair Tax Fraud - read this for opposing views (criticizes the Fair Tax and offers several "alternatives", has many factual errors)
*Note: 23% is the tax rate on the total money spent (tax-included cost) and would appear as a 30% sales tax stated on your sales receipt. The FairTax people say 23% because people instinctively compare it to an income tax. And it also makes it obvious that the govermnemt income is approximately the same under the FairTax as under the current income tax. Anti-FairTax people complain that the FairTax people are trying to mislead you.
You can look at it this way. If you get $100 in income and your income is taxed at 23%, you have $77 left and can buy a new item costing $77. And the federal government gets $23 in income tax.
If there is no income tax, then you get the entire $100. When you buy the $77 item, a 30% sales tax ($23) is added on. You still spend your $100 income and the retailer get $77 and the government gets $23 fair tax.
So, a 23% income tax is equivalent to a 30% sales tax, everything else being equal.