The FairTax, pending in Congress as HR 25 and S 1493, is a non-partisan proposal that would abolish all federal income taxes, including payroll, self-employment, alternative minimum, income, capital gains, corporate, and death taxes, replacing them with a simple, visible, federal sales tax.
The FairTax is designed to be revenue-neutral, raising no more and no less than what is currently raised through the taxes it would eliminate. It taxes Americans only on what they spend, not on what they earn.
FairTax advocates say it is a fair, efficient, and intelligent solution to the frustration and inequity of our current tax system, which particularly burdens poor Americans and fixed-income retirees. The FairTax proposal includes specific protections for those Americans, including ending the narrow, regressive Social Security tax, ending income taxes, and beginning a rebate to zero all federal taxes for Americans (with a legal Social Security number) whose annual incomes are less than poverty level.
What Is FairTax.org?
FairTax.org is a nonprofit, nonpartisan, grassroots organization 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 group’s Web site at http://www.fairtax.org or call 1-800-FAIRTAX.