It's clear. It's time for a change - it's time for the FairTax.
The current income tax system is broken. It's complicated, easy to evade, and unfairly burdens the lower and middle classes. And, attempts to fix it have only made it worse.
The FairTax is Fair:
It replaces the federal income tax system, which taxes what we earn, with a tax on what we spend. The FairTax is a consumption tax: the more you buy, the more you pay in taxes; the less you buy, the less you pay in taxes. So everyone pays fairly when they choose to spend.
The FairTax:
- Makes sure everyone pays their fair share
- Allows you to keep your entire Social Security, pension or pay check
- Untaxes the poor with a rebate on the necessities of life
- Protects Social Security and Medicare
- Stimulates investment, economic growth and job creation
The FairTax is Simple:
- NO Tax Filings
- NO Loopholes
- NO Hidden Taxes
The FairTax is Incredible:
- 95% of all American's will pay fewer taxes!
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
And in addition, the FairTax produces the following:
- It lets every worker keep their entire pay check - no payroll or income taxes
- It allows those at/below the poverty level to have zero or negative taxes
- It lets retirees keep their full pension or Social Security checks - untaxed
- It lets everyone keep their capital gains and investment income - untaxed
- It encourages savings and investment - creating greater national growth and productivity
- It encourages repatriation of wealth from tax havens
- It stimulates exports - leading to greater U.S. employment
- It stimulates economic growth and job formation
- It eliminates gift and inheritance taxes
- It taxes spending of gifted and inherited wealth more fairly
- It has a lower cost of enforcement
- It makes the federal tax rate very visible, and therefore, politically risky to increase
- It ends all personal and corporate income tax filings
- It eliminates the IRS and frees $8 Billion
- It frees the $250 Billion tax accounting/law industry for more productive employment
- It eliminates tax loopholes - no filings, no exemptions, no loopholes
