FairTax Overview
· No more complex rules governing employee benefits and retirement plans.
· No more tax depreciation schedules.
· No more tax rules governing mergers and acquisitions.
· No more international tax provisions.
· Over time, most states will conform their sales taxes to the FairTax, reducing the costs of
complying with multiple rules in each state and its political subdivisions.
· The retailer’s accounting, tax, and personnel (human resources) departments shrink dramatically.
The bottom line:
BottomThe FairTax is a win for wage earners. For business. For retail.
The FairTax is a win-win for both businesses and wage earners. People will choose to work more, earn
more and spend more because marginal tax rates are so much lower. The economic pie will be bigger so
even though people will save a higher proportion of their income, the amount of income that is spent
will increase. Second, we do not live in a closed economy. Because the FairTax eliminates taxes on
capital, foreign capital will flow into the United States to finance increased investment, creating
businesses and jobs.
What is the FairTax Plan?
The FairTax Plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an
integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal
taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through companion
legislation, the repeal of the 16th Amendment. This nonpartisan legislation (HR 25 / S 122) abolishes all federal
personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare,
and self-employment taxes and replaces them with one simple, visible, federal retail sales tax – administered
primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only
on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient,
transparent, and intelligent solution to the frustration and inequity of our current tax system.
What is Americans for Fair Taxation® (FairTax.org)?
FairTax.org is a nonprofit, nonpartisan, grassroots organization solely dedicated to replacing the current tax
system. The organization has hundreds of thousands of members and volunteers nationwide. Its plan supports
sound economic research, education of citizens and community leaders, and grassroots mobilization efforts. For
more information visit the Web page: www.FairTax.org or call 1-800-FAIRTAX.
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