At the heart of the FairTax® is a simple question. Would you rather be taxed multiple times on your income or once on your spending?
The FairTax® is legislation that will change the way the federal government raises revenue. It will eliminate the following:
Personal income taxes, including gift, inheritance, dividend, interest and capital gains.
Payroll taxes (Social Security and Medicare)
Business income taxes.
Corporate income taxes.
Tax withholding and estimated tax payments.
The FairTax® legislation will replace all those taxes with one progressive national retail sales tax on new goods and tangible services. The inclusive flat rate is 23% but because of the Family Consumption Allowance (aka Prebate) each household will determine its own tax rate by its spending. For more information look for the Prebate Schedule on the Learn More page.
The FairTax will also eliminate the Internal Revenue Service as we know it. The FairTax is collected at the final retail sale point and administered by the states, so there is no need for a federal IRS. In addition, the retailers and states keep .25% of the FairTax collected to compensate them for their administrative costs.
Please look around this website, learn more, and get involved. The FairTax movement is an all volunteer effort and we need your help.