The current federal income tax system is clearly broken-unfair,overly complex and almost impossible for most Americans to understand. But there is a reasonable, nonpartisan alternative before Congress that is both fair and easy to understand. A system that allows you only pay taxes on what you spend. The FAIRtax is a nation sales tax that treats every person equally and allows American businesses to thrive while generating the same tax revenue as the current tax code.

The FAIRtax is a REPLACEMENT not an add-on to the income tax. Under the FAIRtax, every person in the U.S. will pay a sales tax on purchases of NEW goods and services, excluding necessities due to the prebate. The FAIRtax rate after necessities is 23% compared to combing the 15% income tax bracket with the 7.65% of employee payroll taxes under the current system- both of which will be eliminated. Your paycheck will be what you earned without federal deductions giving you an instant raise in pay. The FAIRtax puts Social Security and Medicare on a more solid funding foundation. Instead of being funded by taxes on worker’s wages, which is a small pool, they will be funded by taxes on overall consumption by all residents. Continue reading →