FairTax FAQ's / Quick Facts
Here's the FairTax in a Nutshell
Discussions with focus groups of Americans showed that what citizens want is a tax system that provides Fairness, Simplicity, and Visibility. The FairTax achieves these objectives through:
- Simplicity—one rate for everyone; no tax filings
- Fairness—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
- Visibility—any change in the tax rate shows on every cash register receipt
In addition, the FairTax:
- Lets every worker keep their entire pay check—no payroll or income taxes
- Allows those at/below the poverty level to have zero or negative taxes
- Lets retirees keep their full pension or Social Security checks—untaxed
- Lets everyone keep their capital gains and investment income—untaxed
- Encourages savings and investment—creating greater national growth and productivity
- Encourages repatriation of wealth from tax havens
- Stimulates exports—leading to greater U.S. employment
- Stimulates economic growth and job formation
- Eliminates gift and inheritance taxes
- Taxes spending of gifted and inherited wealth more fairly
- Has a lower cost of enforcement
- Makes the federal tax rate very visible, and therefore, politically risky to increase
- Ends all personal and corporate income tax filings
- Eliminates the IRS and saves billions of wasted taxpayer dollars
- Frees the $250 Billion tax accounting/law industry for more productive employment
- Eliminates tax loopholes—no filings, no exemptions, no loopholes
Curious about how the FairTax compares with the IRS?
Check out the comparison chart and see which system wins.
Ready to take action?
Find out how you can make a difference!
