Fair Tax Ends All Forms of Federal Income Tax,
So How Will The Government Get Its Money?
With the Fair Tax, you pay tax only when you choose to spend money on services and new goods. Every
legal resident receives a monthly sum (a “prebate”) based on family size.
The refunds become pre-funds ( rebates→ prebates) for the purpose of untaxing legal residents up to
the poverty level (determined annually by HHS). The prebate is delivered to you for your use at the
beginning of each month. You are not forced to use it as tax relief of purchases you might or might not
wish to make. How about starting a “rainy day fund”, or……….? The prebate is self-funding (doesn’t add
to the deficit). All Income Tax is gone, allowing you to control your entire paycheck and any and all
Besides legal/illegal residents making their voluntary taxable purchases at the retail level, the Fair Tax
will have hugely expanded the tax base and virtually eliminated tax evasion. Taxing consumption (70%
of GDP) is a more reliable source of revenue even during economic downturns.
Several Fair Tax Advantages
FAIRTax is INCORRUPTIBLE
Or as close to incorruptible as a tax can be
Every tax loophole in the tax code was put there by politicians in Congress. Any tax system which can include or exclude, reward or punish certain behaviors or groups will ALWAYS become corrupted. When special interests can “opt out” of paying their fair share, you and I have to make up the difference. Except for the FAIRTax rate itself, Congress (and human fallibility) are taken out of the taxation process and, if they mess with the rate they’ll have to answer to you and me at the very next election. When more of us pay our tax, the smaller the burden for each of us. That’s how FAIRTax will painlessly accomplish what the Income-tax, Payroll tax, and Social Security tax have failed to accomplish in 77,000 pages, over 103 years. Are you willing to try something better?
FAIRTax is PROGRESSIVE but not CONFISCATORY
Pretty much every American adult spends $1,000 on the most basic food and shelter each month. The tax on that first $1,000 is reimbursed to each adult, every month. (A little less for children.) That’s the Prebate. Those who spend more, end up paying more tax at an effectively higher rate. This is the very definition of “Progressive.” Top payers will never pay more than 30% tax-exclusive
FAIRTax is UNIFYING not DIVISIVE
Congress uses our current tax system to divide us, to conquer us. We are taxed by groups and by classes. How can anyone think it’s okay to single out a segment of Americans, workers for example, for a targeted tax? Working men and women are already providing all of society’s goods and services. Why do we punish them with an income tax? Everyone consumes and all consumers become taxpayers under the FAIRTax. Are you willing to try something better?
No Gift Tax
Win a Prize? The Lottery? Early Inheritance?
No longer necessary to report your wins or gifts given or received. Win a prize? the lottery? or early inheritance? No need to sell it to pay the tax. Income Tax is gone
No Capital Gains
Profits Become Tax-Free
Invest in or sell anything at any time without worrying about income taxes to be paid. When you make money under the income tax system, you are making it for you and your partner, the government. They took none of the risk. The Fair Tax eliminates all income taxes, making all investments private. You have no silent partner under the Fair Tax. Enjoy your capital gains. Pad your own coffers. Now you can finally invest in yourself and your family.
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No Death Tax
Inheritance No Longer Penalized
The Government can’t tax money or property you inherit unless it considers it income. Why? We have an income tax code that makes it taxable. Under the Fair Tax Code, income is no longer taxed. Income is tax-free no matter how you earn it. If you spend it on taxable items, you will be in effect sharing it with the Government. Your choice to spend, how much, when, and where. Income tax is toxic.
No Payroll Tax
Social Security/Medicare Become Securely Funded
Multiply 7.6% times your gross salary. That’s how much extra income you’ll have in take-home pay. The Fair Tax eliminates the payroll tax and still funds Social Security and Medicare with no modification. The payroll tax is the most regressive, abusive tax you will ever pay for the right to work, especially when the government can not keep their part of the payroll tax contract.
No Tax Audits
Individuals Are No Longer Accountable – Business Is
You as a tax paying consumer cannot be audited. Only the service provider or the retailer you patronize is held responsible to the government. No audit, no need for the investigating arm of the IRS. No tax evasion, fines, prison sentences or litigation to prove your innocence. No personal tax debt. No social stigma. Fair Tax, a national consumption tax like a state sales tax removes all individual accountability (audits).
No Filing Taxes
Your Earnings Belong to You, Not The Government. Privacy.
April 15th will no longer rest its weight over your head, if we stop taxing income. That’s exactly what the Fair Tax does. Even if you get a refund, there is the process of filing. Even if you have someone figure your taxes, you must provide them with the proof of your expenditures of tax-deductible items. Are you ready to prove you deserve a refund? A refund means they have taken your money already and might return some. It’s your money, it’s your right to privacy, and it’s your choice.
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