Among the many ways the fairtax beings fairness to taxation is it introduces fair trade to free trade. Currently over 98% of everything that is imported into this country comes from a country that has a border adjustment in their tax code.



China reimburses their exporters up to 17% of the cost of their products to remove the cost of their VAT from their exports while charging the same 17% to imports. Mexico does the same with a 16% VAT, Canada with a 13% goods and service tax,…

An important thing to remember is that the fairtax replaces the income tax.

In order to understand why the fairtax taxes government consumption, we need to first understand how government collects taxes from government's spending under present income taxes. To simplify the discussion, imagine a group of people on an island. Every year, each chips in 22% of his income to pay for things important to the group.

One year the…