The FairTax Solution

If you are concerned about jobs going overseas

The FairTax fixes it by removing corporate and individual income taxes, as well as capital gains, social security and payroll tax withholding.  Overnight the U.S. becomes the most business friendly nation in the world.

Potentially several trillions of dollar denominated overseas accounts would be “repatriated” for investment here.

If you are concerned about the balance of trade deficit

The FairTax fixes it by removing most of the embedded tax in the export product before it even gets to the port.  This is conservatively estimated to be 20%.  At the same time all imported goods would be subject to the consumption tax on a par with domestically produced goods.

If you are concerned about the shrinking economy

The FairTax fixes it by encouraging productivity an estimated 10% the first year, continuing at approximately that rate far into the future.  Rather than fighting over an ever dwindling piece of the pie, the economic pie will grow, insuring everyone a larger piece.

If you are concerned about the viability of Social Security and Medicare

The FairTax fixes it by expanding the contributing base from a relatively few who are employed to everyone who buys new goods and services.  This means tripling the base, which would make these programs solvent for the foreseeable future.

If you are concerned that the rich are not paying their fair share

The FairTax fixes it by shifting a higher percentage of tax on those who spend the most.  People at the poverty level would pay no effective tax while those living the more opulent lifestyle would pay close to 23%.  Compare the rate most of those folks pay today on unearned income (capital gains) which is 15%.

If you are concerned that a consumption tax would be regressive

The FairTax fixes it by something known as the prebate.  Under the FairTax a family of 4 would receive $559 at the beginning of every month to reimburse the tax on necessities.  In addition, if said family wished to avoid taxes altogether on many items, they could do so by buying used.  Understand though that the prebate goes to everyone, not just the poor.

If you are concerned that illegals are taking unfair advantage of the income tax

The FairTax fixes it by requiring a social security card in order to qualify for the prebate.

If you are concerned that a consumption tax would mean an increase in taxes

The FairTax fixes it by being “revenue neutral”, which means the consumption tax rate is set to provide the exact same income to the government as is now provided by all the taxes the FairTax replaces, dollar for dollar. 

If you are concerned the government is spending too much money

Sorry, the FairTax doesn’t fix it but the FairTax will put the cost of government in bold numbers on every cash register slip.  Compare that to the situation today, where you have no concept of how much is going to the government.  If you really want to hold the line on spending you must get more involved in the day to day happenings in Washington.  The FairTax only pertains to the revenue side of the ledger.

If you are concerned that our corporate income tax rate is putting us at a disadvantage in attracting foreign investment

The FairTax fixes it by reducing the highest marginal rate in the world from 35% to 0%.  The idea that corporations actually pay taxes, is one of the biggest misconceptions in public life today.  Corporations only collect taxes.  It’s the consumer who actually pays.

If you are concerned that 1^st Amendment rights are being eroded by tax policy

The FairTax fixes it by removing the threat over tax exempt status for non profits and churches.  It does that because the income tax system goes away, taking all possible forms of social engineering and crony favoritism with it.

If you are concerned that politicians and lobbyists have too much power

The FairTax fixes it by removing that political play toy known as the income tax.  No longer could politicians and lobbyists game the system to their own benefit, and to the detriment of the people.

If you are concerned that we could have a sales tax on top of an income tax

The FairTax fixes it by ripping out the income tax code wholesale in the first few pages of the bill.  A sunset provision also makes the FairTax null and void if the Sixteenth Amendment is not repealed within 7 years.

If you are concerned that the income tax is incomprehensible

The FairTax fixes it by replacing 72,500 pages of code, regulations and findings with 133 pages (House Resolution 25 and Senate File 13)

If you are concerned about not having enough left over at the end of the month

The FairTax fixes it by allowing you to take home an extra 15% on your paycheck.  When was the last time you saw a 15% raise?  There would be no withholding for federal income tax, Social Security, or Medicare.

The FairTax – If you understand it, you will demand it!