0% Tax Rate

Everyone is Treated Equally

Income is not a factor. Every legal resident will receive the prebate. The government will no longer be able to divide and conquer the tax base with loopholes and giveaways. Individuals will have more control over their income. Everyone will have skin in the same game. United together we will be stronger in our fight against corruption and overspending.

FAIRtax Grows the Economy

Incentives matter. The current income tax is a pro-disincentive. Eliminating the income tax will encourage hard work, savings, and investment, by allowing the wage earner to control his income and spending. Also, by eliminating the IRS, there will be no need to send money offshore to avoid taxation — the money can remain in our country and create jobs and wealth. By leaving money in the hands of those who earn it -instead of concentrating it in the hands of politicians and lobbyists – innovation will evolve naturally through competition instead of from corrupt central planning.

Everything is Taxed Once and Only Once

Only new goods and services are taxed. There is no tax on used goods. This will further help lower-income earners who spend above the poverty level. It has the added environmental benefit of encouraging the purchase of used goods and reducing waste that goes into landfills.

Tax According to the Ability to Pay

FAIRtax taxes the food everyone buys, but it isn’t really as horrible as it sounds. It is important to remember that the prebate you receive every month is designed to pay for the tax on what we spend up to the poverty level. Taxing food is actually a good method of separating the poor from the rich, and because of the prebate it doesn’t hurt those with less income. The cost of food can vary greatly from very cheap to ridiculously expensive. Why should we allow those who can afford ridiculously expensive food day after day not to pay taxes?

Businesses are treated equally

Businesses are not people and do not pay taxes. All taxes on businesses are expenses that are hidden in the price they charge their customers. So why do we bother to tax businesses when we could more efficiently just tax their customers? The reason is that bigger businesses can use the tax code to gain an unfair advantage. They advocate for a tax that they can get out of. This leaves their smaller competitors with the tax that they must add to their expenses and pass along to their customers. Follow the money; ask a forensic accountant. Taxing businesses is just a platform for corruption. Stop taxing businesses = more businesses = greater competition = lower prices= more innovation.

The way a society is taxed says a lot about that society

Low taxation and small government accompanies the ascent of civilizations; high taxation and large government their demise. FAIRtax allows people to get out of debt and save at the fastest rate possible; protecting the prosperity of the taxpayer and securing the wealth of the nation. Less tax = more freedom = more prosperity = more innovation = everyone is better off. FAIRtax separates the necessary taxation from chronic tax abuse.

FAIRTax is INCORRUPTIBLE*

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 (23% tax-inclusive.)  Are you willing to try something better?

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

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 Tax

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.

No Death Tax

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

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

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

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.