Donald Trump says he would reduce America’s trade deficit and bring jobs back to the U.S. by renegotiating fair trade agreements.
The FAIRtax would do the same by taxing imports and eliminating taxes on exports.
The FAIRtax eliminates the 15.3% payroll tax, the corporate income tax, and tax compliance costs on goods manufactured in the U.S. and sold abroad. It imposes a 23% sales tax on goods imported into the U.S.
By taxing consumption instead of manufacturing, the FAIRtax would treat foreign and domestic products equally, introducing free trade for a change, and remove the incentive to ship jobs overseas.