Your money, your decision
The FairTax is a national sales tax that treats every person equally and allows American businesses to thrive, while generating the same tax revenue as the current four-million-word-plus word tax code. Under the FairTax, every person living in the United States pays a sales tax on purchases of new goods and services, excluding necessities due to the prebate. The FairTax rate after necessities is 23% and equal to the lowest current income tax bracket (15%) combined with employee payroll taxes (7.65%), both of which will be eliminated.
Important to note: the FairTax is the only tax plan currently being proposed that includes the removal of the payroll tax.
Curious? Read some of the research listed below to see exactly how your taxes would change.
Keep Your Entire PaycheckFor the first time in recent history, American workers will get to keep every dime they earn. By eliminating federal income taxes and payroll taxes, your salary or hourly wage is exactly what you'll deposit in the bank.
Social Security & Medicare FundingBenefits will not change. The FairTax actually puts these programs on a more solid funding foundation. Instead of being funded by taxes on workers' wages, which is a small pool, they'll be funded by taxes on overall consumption by all residents. Learn More.
Get a Tax Refund in Advance on Purchases of Basic NecessitiesThe FairTax provides a progressive program called a prebate. This gives every legal resident household an “advance refund” at the beginning of each month so that purchases made up to the poverty level are tax-free. The prebate prevents an unfair burden on low-income families. Learn more.
Pay Tax on Only What You SpendBe in control of your financial destiny. You alone can control your tax burden. If you're thrifty, you'll pay lower taxes than somebody who is not. Most importantly, you'll be taxed fairly.
Learn more about what is taxed.