FAIR TAX

The FairTax proposal is a comprehensive revenue plan that would eliminate most major federal income and payroll taxes, including personal, gift, estate, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes. On payday, every American would receive 100 percent of his or her paycheck, minus any state income taxes. These federal taxes would be replaced by a national retail sales tax. Under the FairTax, the national sales tax rate initially would be 23 percent, with adjustments made to the rate in subsequent years. The FairTax is progressive. To make this system fair for low-income Americans, all taxpayers would receive a monthly "prebate," so no one would pay taxes for consumption up to the poverty line. The national retail tax would only be collected on new purchases, making "used" purchases tax-free. Additionally, business purchases would be exempt from the tax, thereby eradicating corporate tax compliance costs currently hidden in retail prices. As it is at this time an estimated 51% of eligible taxpayers pay no federal income tax (do not pay their fair share) . Those that do not help pay the bill lack good judgement  to decide who should decide how to spend our money.