Senior citizens as a group fair better under the FAIRtax than under the current income tax. Although some erroneously believe they pay no taxes if living on Social Security alone, they are still paying the hidden corporate income tax and employer payroll tax imbedded in everything they buy. Under the FAIRtax, those hidden costs are removed. Plus, senior, like ever other citizen or legal resident will receive the prebate at the beginning of each month for taxes paid on the cost of necessities. Since once an item is taxed it is not taxable again, all purchases of used goods are rendered tax free. If a senior wishes to continue working, they are freed from the regressive payroll taxes on their earnings under the FAIRtax and there is no income tax on their Social Security. The income tax imposed on investment income and pension benefits or IRA withdrawals is repealed. An income tax deduction from most pension funds, IRAs and 401(k) was taken for contributions to most of these plans. All beneficiaries and owners of these plans expected to pay income tax on them upon withdrawal, but are not required to do so under the FAIRtax. Plus any interest on savings you may have acquired is no longer subject to taxation. Seniors have a dramatically higher home ownership rate than other age groups but those who wish to sell their homes face capital gains tax under the current system. Senior also have the comforting knowledge that if they wish to pass their estate on to their heirs, that the heirs will not have to sell all or part of that estate in order to pay the inheritance tax. There is no capital gains tax or inheritance tax under the FAIRtax. The FAIRtax makes the economy much more dynamic and prosperous. Consequently, federal revenues grow which makes it less likely that federal budget pressures require Medicare and Social Security benefit cuts. And, since the FAIRtax requires a certain percentage of all revenues collected to be distributed between these two programs, Medicare and Social Security will be much more stable for years to come. For more information, go to FAIRtax.org
