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Encyclopedia > FairTax
Throughout this article, the unqualified term "dollar" and the $ symbol refer to the United States dollar.
The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan.
The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan.

The FairTax (H.R.25/S.1025) is a bill in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including Alternative Minimum Tax), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate taxes with a national retail sales tax, to be levied once at the point of purchase on all new goods and services. The proposal also calls for a monthly payment to households of citizens and legal resident aliens (based on family size) as an advance rebate of tax on purchases up to the poverty level.[1][2] The sales tax rate, as defined in the legislation, is 23% of the total register price (23¢ of every $1—calculated the same way as income taxes), which is comparable to a 30% traditional state sales tax (30¢ on top of every $1).[3] Because the U.S. tax system has a hidden effect on prices,[4] moving to the FairTax would decrease production costs due to the removal of business taxes and compliance costs, which is predicted to offset a portion of the FairTax effect on prices.[5] Image File history File links Unbalanced_scales. ... USD redirects here. ... Image File history File links FairTaxBook. ... Image File history File links FairTaxBook. ... The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... Neal Boortz (born April 6, 1945), is a U.S. talk radio host. ... John Elmer Linder (born September 9, 1942), American politician, has been a Republican member of the United States House of Representatives since 1993, representing the 7th District of Georgia (map). ... is the 214th day of the year (215th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... A bill is a proposed new law introduced within a legislature that has not been ratified, adopted, or received assent. ... A bill is a proposed new law introduced within a legislature that has not been ratified, adopted, or received assent. ... Type Bicameral Houses Senate House of Representatives President of the Senate President pro tempore Dick Cheney, (R) since January 20, 2001 Robert C. Byrd, (D) since January 4, 2007 Speaker of the House Nancy Pelosi, (D) since January 4, 2007 Members 535 plus 4 Delegates and 1 Resident Commissioner Political... Seal of the Internal Revenue Service Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        IRS redirects here. ... This article describes the government of the United States. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        The federal government of the United States imposes a progressive tax on the taxable income of individuals, corporations, trusts, decedents estates, and certain bankruptcy estates. ...        Alternative Minimum Tax (AMT) is a tax system that is part of the federal income tax system in the United States. ... This article is the current Taxation Collaboration of the Month. ... For other uses, see FICA (disambiguation). ...        Corporate tax in the United States is a tax on the taxable income of a C corporation or an entity taxed as a C corporation. ... For all other forms of taxation, see tax Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        A capital gains... Inheritance tax, also known in some countries outside the United States as a death duty and referred to as an estate tax within the U.S, is a form of tax levied upon the bequest that a person may make in their will to a living person or organisation. ... This article is about Estate tax in the United States. ... A sales tax is a consumption tax charged at the point of purchase for certain goods and services. ... A good in economics is any physical object (natural or man-made) or service that, upon consumption, increases utility, and therefore can be sold at a price in a market. ... This article is about a term used in economics. ... The household is the basic unit of analysis in many microeconomic and government models. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of goods or services that are purchased. ... Taxes and subsidies have the effect of shifting the quantity and price of goods. ... In economics, the cost-of-production theory of value is the theory that the price of an object is determined by the sum of the cost of the resources that went into making it. ...


With the rebate taken into consideration, the effective tax rate would be progressive on consumption and could result in a tax burden of zero or less for some taxpayers.[2] However, opponents of the tax argue that while progressive on consumption, the tax could be regressive on income,[6] and would accordingly decrease the tax burden on high income earners and increase the tax burden on the middle class.[3][7] The plan's supporters in turn claim that it would increase purchasing power,[8] and decrease tax burdens by broadening the tax base and effectively taxing wealth.[9][2] Many mainstream economists and tax experts argue that consumption taxes, such as the FairTax, would have a positive impact on savings and investment (not taxed), ease of tax compliance, increased economic growth, incentives for international business to locate in the U.S., and increased U.S. international competitiveness (border tax adjustment in global trade).[3][5][10] Others argue that a consumption tax of this kind could be difficult to collect, having challenges with tax evasion,[6][3] and that it may not yield enough money for the government, resulting in cutbacks in spending, a larger deficit, or a higher sales tax rate.[3] The effective tax rate is the amount of income tax an individual or firm pays divided by the individual or firms total taxable income. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        A progressive tax is a tax imposed so that the effective... In economics, consumption refers to the final use of goods and services to provide utility. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        A regressive tax is a tax imposed so that the tax... Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ... First discussed by the Physiocrats in France, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare. ... The American upper class described the sociological ideology concerning the status of the top layer of society in the United States. ... A monument to the working and supporting classes along Market Street in the heart of San Franciscos Financial District, home to tens-of-thousands of professional and managerial middle class workers each day. ... Purchasing Power- the amount of value of a good/services compared to the amount paid. ... For the business meaning, see Wealth (economics). ... A consumption tax is a tax on the purchase of a good or service. ... In common usage, saving generally means putting money aside, for example, by putting money in the bank or investing in a pension plan. ... Invest redirects here. ... World GDP/capita changed very little for most of human history before the industrial revolution. ... This article or section may contain external links added only to promote a website, product, or service – otherwise known as spam. ... International trade is the exchange of goods and services across international boundaries or territories. ... This article contrasts tax evasion, tax avoidance, tax resistance and tax mitigation. ... Government spending or government expenditure consists of government purchases, which can be financed by seigniorage (the creation of money for government funding, at a heavy price of high inflation and other possibly devastating consequences), taxes, or government borrowing. ... A budget deficit occurs when an entity (often a government) spends more money than it takes in. ... A tax (also known as a dutyor Zakat in islamic economics) is a charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ...


The FairTax has generated a large grassroots tax reform movement in recent years, led by the non-partisan group Americans For Fair Taxation.[11] Increased support was created after talk radio personality Neal Boortz and Georgia Congressman John Linder published The FairTax Book in 2005 and additional visibility is being gained in the 2008 presidential campaign. While the proposed bill has yet to have a major effect on the tax system, the Fair Tax Act has the highest number of cosponsors among tax reform proposals (attracting 72 in the 110th United States Congress), gathering much stronger support than popular flat tax legislation. A number of congressional committees have heard testimony on the FairTax; however, it has not been voted on in either Chamber. The plan is expected to increase cost transparency for funding the federal government and supporters believe it would have positive effects on civil liberties and advantages with taxing illegal activity and illegal immigrants.[5][12] Because the FairTax plan would remove taxes on income, tax deductions would have no meaning or value, which concerns some law makers about losing this method of social incentive. The legislation calls for an aggressive repeal of the Sixteenth Amendment, to prevent Congress from introducing new income tax legislation in the future.[13] A grassroots political movement is one driven by the constituents of a community. ... Tax reform is the process of changing the way taxes are collected or managed by the government. ... Americans For Fair Taxation (AFFT) is the nations largest, single-issue grassroots organization dedicated to fundamental tax code replacement. ... For other uses, see Talk Radio. ... Neal Boortz (born April 6, 1945), is a U.S. talk radio host. ... John Elmer Linder (born September 9, 1942), American politician, has been a Republican member of the United States House of Representatives since 1993, representing the 7th District of Georgia (map). ... The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... The United States presidential election of 2008, scheduled to be held on November 4, 2008, will be the 55th consecutive quadrennial president and vice president of the United States. ... Tax reform is the process of changing the way taxes are collected or managed by the government. ... The One Hundred Tenth United States Congress is the current meeting of the legislative branch of the United States federal government, composed of the Senate and the House of Representatives. ... A flat tax, also called a proportional tax, is a system that taxes all entities in a class (typically either citizens or corporations) at the same rate (as a proportion on income), as opposed to a graduated, or progressive, scheme. ... This article needs cleanup. ... For other uses, see Crime (disambiguation). ... // Illegal immigration to the United States refers to the act of foreign nationals voluntarily resettling in the United States in violation of U.S. immigration and nationality law. ... Amendment XVI in the National Archives Amendment XVI (the Sixteenth Amendment) of the United States Constitution was ratified on February 3, 1913. ...

Taxation in the United States

This article is part of the series:
Politics and government of
the United States
Taxation in the United States is a complex system which may involve payment to at least four different levels of government. ... Image File history File links US-GreatSeal-Obverse. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      Politics of the United States takes place in a framework of a presidential...


Federal taxation
History
Internal Revenue Service
Court  ·   Forms  ·   Code
Income tax  ·   Payroll tax
Alternative Minimum Tax
Estate tax  ·   Excise tax
Gift tax  ·   Corporate tax
Capital gains tax
State & local taxation
State income tax
Sales tax  ·   Use tax
Property tax
State tax levels
Federal tax reform
FairTax  ·   Flat tax
Tax protester arguments
Constitutional
Statutory  ·   Conspiracy

Part of the Taxation series
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Contents

Taxation in the United States is a complex system which may involve payment to at least four different levels of government. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        The history of taxation in the United States began when it was composed of colonies ruled by the British Empire, French Empire, and Spanish Empire. ... Seal of the Internal Revenue Service Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        IRS redirects here. ... Seal of the United States Tax Court. ... Seal of the Internal Revenue Service Tax forms in the United States are used by taxpayers and tax-exempt organizations to report financial information to the Internal Revenue Service (IRS). ... The Internal Revenue Code (or IRC) (more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, gift taxes, estate taxes... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        The federal government of the United States imposes a progressive tax on the taxable income of individuals, corporations, trusts, decedents estates, and certain bankruptcy estates. ... The Federal Insurance Contributions Act (FICA) tax, a kind of payroll tax, is a United States employment tax imposed in an equal amount on employees and employers to fund federal programs for retirees, the disabled, and children of deceased workers. ...        Alternative Minimum Tax (AMT) is a tax system that is part of the federal income tax system in the United States. ... This article is about Estate tax in the United States. ...        Look up Excise tax in the United States in Wiktionary, the free dictionary. ... Inheritance tax, also known in some countries outside the United States as a death duty and referred to as an estate tax within the U.S, is a form of tax levied upon the bequest that a person may make in their will to a living person or organisation. ...        Corporate tax in the United States is a tax on the taxable income of a C corporation or an entity taxed as a C corporation. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income, but the tax rate for individuals is... Taxation in the United States is a complex system which may involve payment to at least four different levels of government. ... States with no state income tax are in red, states taxing only dividend and interest income are in yellow Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        State income tax is an income tax in the United States that is levied by each... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of goods or services that are purchased. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A use tax is a type of excise tax levied in the United States. ... Property tax, millage tax is an ad valorem tax that an owner of real estate or other property pays on the value of the property being taxed. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        State tax levels indicate both the tax burden and the services a state can afford to provide residents. ... Tax reform is the process of changing the way taxes are collected or managed by the government. ... A flat tax, also called a proportional tax, is a system that taxes all entities in a class (typically either citizens or corporations) at the same rate (as a proportion on income), as opposed to a graduated, or progressive, scheme. ... Tax protester arguments are a number of theories that deny that a person has a legal obligation to pay a tax for which the government has determined that person is liable. ... Tax protesters in the United States make a number of statutory arguments that the assessment of the income tax in the United States violates the statutes enacted by the United States Congress and signed into law by the President. ... Tax protester conspiracy arguments are arguments raised by tax protesters that assert that the imposition of the income tax in the United States is the result of some kind of illicit conspiracy. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links Flag_of_the_British_Virgin_Islands. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links Flag_of_Germany. ... Image File history File links Flag_of_Hong_Kong. ... Image File history File links Flag_of_India. ... Image File history File links Flag_of_Indonesia. ... Image File history File links Flag_of_the_Netherlands. ... Image File history File links Flag_of_New_Zealand. ... Image File history File links Flag_of_Peru. ... Image File history File links Flag_of_Ireland. ... Image File history File links Flag_of_Russia. ... Image File history File links Flag_of_Singapore. ... Image File history File links Flag_of_Tanzania. ... Image File history File links Flag_of_the_United_Kingdom. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Comparison of tax rates around the world is a difficult and... This table lists OECD countries by total tax revenue as percentage of GDP (as of 2005). ...

Legislative history

The FairTax plan was created by Americans For Fair Taxation, an advocacy group formed for tax reform. The group developed the plan and the name "Fair Tax" with economists based on interviews, polls, and focus groups of the general public.[14][3] Since the term "fair" is subjective, the name of the plan has been considered an oxymoron by some and deceptive by others. Georgia Republican John Linder first introduced the FairTax bill (H.R.2525) in July 1999 to the 106th United States Congress. He has reintroduced substantially the same bill in each subsequent session of Congress. While the bill attracted a total of 56 House and Senate cosponsors in the 108th Congress (H.R.25/S.1493),[15][16] 61 in the 109th Congress (H.R.25/S.25),[17][18] and 72 in the 110th United States Congress (H.R.25/S.1025),[19][20] it has not been voted on by either committee in the House or Senate. To become law, the bill will need to be included in a final version of tax legislation from the U.S. House Committee on Ways and Means, then obtain support from the Joint Committee on Taxation, pass both the House and the Senate, and finally be signed by the President. Americans For Fair Taxation (AFFT) is the nations largest, single-issue grassroots organization dedicated to fundamental tax code replacement. ... An advocacy group, interest group or lobbying group is a group, however loosely or tightly organized, doing advocacy: those determined to encourage or prevent changes in public policy without trying to be elected. ... GOP redirects here. ... John Elmer Linder (born September 9, 1942), American politician, has been a Republican member of the United States House of Representatives since 1993, representing the 7th District of Georgia (map). ... // Two sessions, roughly paralleling the calendar years 1999 and 2000: First Session: January 6, 1999 – November 22, 1999 Second Session: January 24, 2000 – December 15, 2000 January 7, 1999 – February 12, 1999: Impeachment trial of President Bill Clinton March 29, 1999 – Dow Jones Industrial Average ended above 10,000 for... -1... The 109th United States Congress meets from January 4, 2005, to January 1, 2007. ... The One Hundred Tenth United States Congress is the current meeting of the legislative branch of the United States federal government, composed of the Senate and the House of Representatives. ... The Committee on Ways and Means is a committee of the United States House of Representatives. ... The Joint Committee on Taxation is a Committee of the U.S. Congress established under the Internal Revenue Code. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      For other uses, see President of the United States (disambiguation). ...


The FairTax legislation has been introduced by Linder in the House and by Georgia Republican Senator Saxby Chambliss in the Senate. Its formal name is the Fair Tax Act of 2007. The legislation has been discussed with President George W. Bush and Secretary of the Treasury Henry M. Paulson.[21] A number of congressional committees have also heard testimony on the FairTax. The bill is cosponsored by former Speaker of the House Dennis Hastert but has not received support from the Democratic leadership, which now controls Congress.[19][18][22] Democratic Representative Collin Peterson of Minnesota and Democratic Senator Zell Miller of Georgia cosponsored and introduced the bill in the 108th Congress, but Peterson is no longer cosponsoring the bill and Miller has left the Senate.[15][16] In the 109th and 110th Congress, Representative Dan Boren has been the only Democrat to cosponsor the bill.[17][19] Linder claims that Nancy Pelosi has instructed House Democrats against cosponsoring the bill.[23] Other attempts to replace the U.S. tax system have attracted fewer cosponsors. The Freedom Flat Tax (H.R.1040), sponsored by Texas Republican Michael C. Burgess, has 6 cosponsors, with no other proposal in Congress having as many.[24] Clarence Saxby Chambliss (born November 10, 1943) is the senior United States Senator from Georgia. ... George Walker Bush (born July 6, 1946) is the forty-third and current President of the United States of America, originally inaugurated on January 20, 2001. ... The United States Secretary of the Treasury is the head of the United States Department of the Treasury, concerned with finance and monetary matters, and, until 2003, some issues of national security and defense. ... Henry Paulson Henry M. (Hank) Paulson, Jr. ... The term Speaker is usually the title given to the presiding officer of a countrys lower house of parliament or congress (ie: the House of Commons or House of Representatives). ... John Dennis Denny Hastert (born January 2, 1942) is an American politician. ... The Democratic Party is one of two major political parties in the United States, the other being the Republican Party. ... Collin Clark Peterson (born June 29, 1944), is an American politician. ... Zell Bryan Miller (born February 24, 1932) is an American politician from the U.S. state of Georgia. ... David Daniel Dan Boren (born August 2, 1973) is a Democratic U.S. politician from the state of Oklahoma, representing Oklahomas 2nd congressional district in the U.S. House of Representatives (map). ... Nancy Patricia DAlesandro Pelosi (born March 26, 1940) is currently the Speaker of the United States House of Representatives. ... A flat tax, also called a proportional tax, is a system that taxes all entities in a class (typically either citizens or corporations) at the same rate (as a proportion on income), as opposed to a graduated, or progressive, scheme. ... (Another Michael Burgess is a coroner investigating the death of Diana, Princess of Wales) Michael Clifton Burgess, M.D. (born December 23, 1950) is a physician and politician from the state of Texas, currently representing the states 26th Congressional district (map) in the United States House of Representatives. ...


Tax rate

The sales tax rate, as defined in the legislation, is 23% of the total register price, which is comparable to a 30% traditional state sales tax.[3] The effective tax rate for any household would be variable due to the fixed monthly tax rebates that are used to "untax" purchases up to the poverty level.[2] The tax would be levied on all U.S. retail sales for personal consumption on new goods and services. Critics argue that the sales tax rate defined in the legislation may not be revenue neutral (that is, it would collect less for the government than the current tax regime), and thus would not yield enough money for the government.[3] The effective tax rate is the amount of income tax an individual or firm pays divided by the individual or firms total taxable income. ... In the United States, taxpayers will get a tax refund, a refund on their U.S. income tax, if the tax they owe is less than the sum of: The total amount of refundable tax credits that they claim. ... A good in economics is any physical object (natural or man-made) or service that, upon consumption, increases utility, and therefore can be sold at a price in a market. ... This article is about a term used in economics. ...


Sales tax rate

The FairTax legislation would apply a 23% federal retail sales tax on the total transaction value of a purchase; in other words, consumers pay to the government 23 cents of every dollar spent (sometimes called tax-inclusive—as income taxes are calculated). The assessed tax rate is 30% if the FairTax is added to the pre-tax price of a good like traditional U.S. state sales taxes (sometimes called tax-exclusive).[3] The FairTax legislation uses total transaction value (tax-inclusive) in presenting the rate; with an item purchased for $100, the retailer receives $77 and the remaining is collected for the federal government. However, American sales taxes have historically been expressed as a percentage of the original sale price (tax-exclusive); items priced at $100 pre-tax cost $130 with the tax added.[25] The use of the tax-inclusive number in presenting the rate has been criticized as deceptive by the plan's opponents. Proponents argue that the 23% number represents a better comparison to income tax rates, which are presented as inclusive rates (see below, Presentation of tax rate).[5] Critics also argue that the sales tax rate would need to be higher to be revenue neutral (see below, Revenue neutrality).[7] Retail redirects here. ... For a type of taxation system in the United Kingdom and elsewhere, see Rates (tax). ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of goods or services that are purchased. ... For a type of taxation system in the United Kingdom and elsewhere, see Rates (tax). ... Throughout this article, the unqualified term dollar and the $ symbol refer to the United States dollar. ... Throughout this article, the unqualified term dollar and the $ symbol refer to the United States dollar. ...


The tax would be levied on all U.S. retail sales for personal consumption on new goods and services. A good would be considered "used" and not taxable if a consumer already owns it before the FairTax takes effect or if the FairTax has been paid previously on the good,[14] which may be different than the item being sold previously. Exports and the purchase of intermediate business sales would not be taxed, nor would savings, investments, or education tuition expenses as they would be considered an investment (rather than final consumption).[1] Personal services such as health care, legal services, financial services, haircuts, and auto repairs would be subject to the FairTax, as would renting apartments and other real property.[3] In comparison, the current tax system also taxes such consumption indirectly by taxing the income used for purchase. State sales taxes generally exempt these services in an effort to reduce the tax burden on low-income families. The FairTax would use a monthly rebate system instead of the common state exclusions. The FairTax would apply to Internet purchases and would tax retail international purchases (such as a boat or car) that are imported to the United States (collected by the U.S. Customs Service).[1] In common usage, saving generally means putting money aside, for example, by putting money in the bank or investing in a pension plan. ... Investment is a term with several closely related meanings in finance and economics. ... Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning. ... A physician visiting the sick in a hospital. ... Financial services is a term used to refer to the services provided by the finance industry. ... This article does not cite any references or sources. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      A U.S. state is any one of the fifty subnational entities of... The United States Customs Service (now part of U.S. Customs and Border Protection or CBP) was the portion of the US Federal Government dedicated to keeping illegal products outside of US borders. ...


Effective tax rate

For more details on this topic, see Distribution of the FairTax burden.

The effective tax rate for any household would be variable due to the fixed monthly tax rebates. The rebates would have the greatest impact at low spending levels, where they could lower a household's effective rate to zero or a negative rate. At higher spending levels, the rebate has less impact, and a household's effective tax rate would approach 23% of total spending.[26] For example, a household of three spending $30,000 a year on taxable items would devote about 6% of total spending to the FairTax after the rebate. A household spending $125,000 on taxable items would spend around 19% on the FairTax.[3] The lowest effective tax rate under the FairTax could be negative due to the rebate. This could occur when a household spends less and pays less in taxes than the average poverty level spending for a similar household size. The household's rebate would exceed actual taxes paid by that household. Buying or otherwise receiving used items can also contribute towards a lower rate. The total amount of spending and the proportion of spending allocated to taxable items would determine a household's effective tax rate.[13] The FairTax (H.R.25/S.1025) is a proposal in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including AMT), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate... The effective tax rate is the amount of income tax an individual or firm pays divided by the individual or firms total taxable income. ... Percent below each countrys official poverty line, according to the CIA factbook. ...

To determine the effective tax rate on consumption:
  • Let t be the statutory tax rate. For a 23% rate, then t = 0.23
  • Let i be the annual income spent on new goods and services.
  • Let r be the annual rebate.
frac{t times i - r}{i}

Monthly tax rebate

2007 FairTax prebate schedule based on poverty level spending according to the poverty guidelines.

Under the FairTax, households of citizens and legal resident aliens would receive a "Family Consumption Allowance" (FCA) based on family size (regardless of income) that is equal to the estimated total FairTax paid on poverty level spending according to the poverty guidelines published by the U.S. Department of Health and Human Services.[1] The poverty level guidelines vary by family size and represent the cost to purchase household necessities. The FCA is a tax rebate (known as a "prebate" as it would be paid in advance) paid in twelve monthly installments equal to 23% of poverty level spending for each household size. The rebate is meant to eliminate the taxation of necessities and make the plan progressive.[3] The formula used to calculate rebate amounts would be adjusted for inflation. To become eligible for the rebate, households would register once a year with their sales tax administering authority, providing the names and social security numbers of each household member. The Social Security Administration would disburse the monthly rebate payments in the form of a paper check via U.S. Mail, an electronic funds transfer to a bank account, or a “smartcard” that can be used much like a bank debit card.[1] The Beacon Hill Institute estimated the overall rebate cost to be $489 billion (assuming 100% participation).[27] Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... Percent below each countrys official poverty line, according to the CIA factbook. ... Percent below each countrys official poverty line, according to the CIA factbook. ... The United States Department of Health and Human Services, often abbreviated HHS, is a Cabinet department of the United States government with the goal of protecting the health of all Americans and providing essential human services. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        A progressive tax is a tax imposed so that the effective... The United States Social Security Administration (or SSA[1]) is an independent agency of the United States government established by a law currently codified at 42 U.S.C. Â§ 901. ... Electronic funds transfer or EFT refers to the computer-based systems used to perform financial transactions electronically. ... A smart card, or integrated circuit(s) card (ICC), is defined as any integrated circuitry embedded into a flat, plastic body. ... Founded in 1991, the Beacon Hill Institute (BHI) is the research arm of the Department of Economics at Suffolk University in Boston. ...


The President's Advisory Panel for Federal Tax Reform cited the rebate as one of their chief concerns when analyzing their national sales tax, stating that it would be "the largest (entitlement program) in American history", and contending that it would "make most American families dependent on monthly checks from the federal government".[7] Based on the advisory panel's tax rate (which differs from the FairTax legislation),[27] "the Prebate program would cost more than all budgeted spending in 2006 on the Departments of Agriculture, Commerce, Defense, Education, Energy, Homeland Security, Housing and Urban Development, and Interior combined."[7] Proponents point out that income tax deductions, tax preferences, loopholes, credits, etc. under the current system was estimated at $945 billion by the Joint Committee on Taxation.[27] This is $456 billion more than the FairTax "entitlement" (tax refund) would spend to cover each person's tax expenses up to the poverty level. In addition, it was estimated for 2005 that the Internal Revenue Service was already sending out $270 billion in refund checks.[27] On January 7, 2005, President George W. Bush announced the establishment of the Presidents Advisory Panel for Tax Reform, a bipartisan panel to advise on options to reform the United States income tax code to make it simpler, fairer, and more pro-growth to benefit all Americans. ... A tax deduction or a tax-deductible expense represents an expense incurred by a taxpayer that is subtracted from gross income and results in a lower overall taxable income. ... This article contrasts tax evasion, tax avoidance and tax mitigation. ... Within the Australian, Canadian, United Kingdom, and United States tax systems, a tax credit is an item which is treated as a payment already made towards taxes owed. ... The Joint Committee on Taxation is a Committee of the U.S. Congress established under the Internal Revenue Code. ... Entitlement is the guarantee for access to benefits because of rights, or by agreement through law. ...


Presentation of tax rate

Sales and income taxes behave differently due to differing definitions of tax base, which can make comparisons between the two confusing. For direct rate comparisons between sales and income taxes, one rate must be manipulated to look like the other. A 30% sales tax rate approximates a 23% income tax rate after adjustment. The current U.S. tax system imposes taxes primarily on income. The tax base is a household's pre-tax income. The appropriate income tax rate is applied to the tax base to calculate taxes owed. Under this formula, taxes to be paid are included in the base on which the tax rate is imposed (known as tax-inclusive). If an individual's gross income is $100 and income tax rate is 23%, taxes owed equals $23. The tax base of $100 can be treated as two parts—$77 of after-tax spending money and $23 of income taxes owed. The income tax is taken "off the top", so the individual is left with $77 in after-tax money.[14] Traditional state sales tax laws impose taxes on a tax base equal to the pre-tax portion of a good's price (known as tax-exclusive). Unlike income taxes, U.S. sales taxes do not include actual taxes owed as part of the base. A good priced at $77 with a 30% sales tax rate yields $23 in taxes owed. Since the sales tax is added "on the top", the individual pays $23 of tax on $77 of pre-tax goods.[14] By including taxes owed in the tax base, a sales tax rate can be directly compared to an income tax rate.


The FairTax statutory rate, unlike most U.S. state-level sales taxes, is calculated on a tax base that includes the amount of FairTax paid. In this manner, the FairTax, like European sales taxes, more closely resembles an income tax calculation. A final price of $100 includes $23 of taxes. Like the income tax example above, the taxes to be paid would be included in the base on which the FairTax is imposed. Neal Boortz has stated that the FairTax would be implemented as an inclusive tax, which would include the tax in the retail price (not added on at checkout) and display the tax on the receipt as 23% of the total.[28][23] The FairTax is presented as a 23% tax rate for easy comparison to income tax rates (the taxes it would be replacing). Proponents believe it is both inaccurate and misleading to say that an income tax is 23% and the FairTax is 30% as it implies that the sales tax burden is higher, when in fact the burden of the two taxes is precisely the same—either both taxes are 23% or both taxes are 30%. The plan's opponents call the semantics deceptive—Laurence Vance, writing for the Ludwig von Mises Institute, goes so far as to call the rate presentation a "lie".[25] Bruce Bartlett, writing in the Wall Street Journal, also called the presentation confusing and deceptive based on the conventional method of calculating sales taxes.[29] In a tax system and in economics, the tax rate describes the burden ratio (usually expressed as a percentage) at which a business or person is taxed. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of goods or services that are purchased. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Value added tax (VAT), or goods and services tax (GST), is... Ludwig von Mises Institute for Austrian Economics, Auburn, Alabama The Ludwig von Mises Institute (LvMI), based in Auburn, Alabama, is a libertarian academic organisation engaged in research and scholarship in the fields of economics, philosophy and political economy. ... Bruce Bartlett (b. ... The Wall Street Journal is an influential international daily newspaper published in New York City, New York with an average daily circulation of 1,800,607 (2002). ...

Comparison to a typical sales rate:
  • Let t be the FairTax rate. For a 23% rate, then t = 0.23
  • Let a be the rate in terms of a typical sales tax.
  • Let p be the price of the good (including the tax).
The revenue that would go to the government:
t times p
The revenue remaining for the seller of the good:
p - t times p
To convert the tax, divide the money going to the government by the money the company nets:
a = frac{t times p}{p - t times p} = frac{t}{1 - t}
Therefore, to adjust any rate below to that of a traditional sales tax, divide the given rate by 1 minus that rate.

Revenue neutrality

Main article: Revenue neutrality of the FairTax

A key question surrounding the FairTax rate is the ability to be revenue-neutral; that is, whether it would result in an increase or reduction in overall federal tax revenues.[14] Economists, advisory groups, and political advocacy groups disagree about the tax rate required for the FairTax to be truly revenue-neutral. Various analysts use different assumptions, time-frames, and methodologies that result in dramatically different tax rates making direct comparison among the studies difficult. The choice between static or dynamic scoring further complicates any estimate of revenue-neutral rates,[30] with the rates presented below based on a static scoring analysis. The FairTax (H.R.25/S.1025) is a proposal in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including AMT), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate... In a tax system and in economics, the tax rate describes the burden ratio (usually expressed as a percentage) at which a business or person is taxed. ... This article is about the statistical technique. ... Dynamic scoring predicts the impact of fiscal policy changes by forcasting the effects of economic agents reactions to policy. ...


One of the leading economists supporting the FairTax is Dr. Laurence Kotlikoff of Boston University. A detailed 2006 study published in Tax Notes by Beacon Hill Institute at Suffolk University and Dr. Kotlikoff concluded the FairTax would be revenue-neutral for the tax year 2007 at a rate of 23.82% (31.27% tax-exclusive) assuming full taxpayer compliance.[31] The study states that if state and local governments continue to collect the same real revenues from their taxpayers, they will be able to maintain their real spending levels, despite the requirement that they pay the FairTax on their purchases.[31] The Argus Group and Arduin, Laffer & Moore Econometrics each published an analysis that defended the 23% rate.[32][33][34] While proponents of the FairTax concede that the above studies did not explicitly account for tax evasion, they also claim that the studies did not altogether ignore tax evasion under the FairTax. These studies implicitly incorporated some degree of tax evasion in their calculations simply by using National Income and Product Account based figures that presumably understate total household consumption.[31] Moreover, these studies did not account for the expected capital gains that would result from a reduction in the real nominal value of U.S. government debt and the increased economic growth that economists believe would occur.[10][31] Laurence J. Kotlikoff (January 30, 1951-) is a american professor of economics at Boston University who believes that the USA is going toward an economic catastrophe in the near future. ... Tax Analysts logo Tax Analysts is a nonprofit publisher that provides international in-depth tax information. ... Founded in 1991, the Beacon Hill Institute (BHI) is the research arm of the Department of Economics at Suffolk University in Boston. ... Arduin, Laffer & Moore Econometrics (ALME) is an economic consulting firm that pools the talents of Donna Arduin, Dr. Arthur Laffer, and Stephen Moore. ... This article contrasts tax evasion, tax avoidance, tax resistance and tax mitigation. ... National Income and Product Accounts (NIPA) use double entry accounting to report the monetary value and sources of output produced in a country and the distribution of incomes that production generates. ... The U.S. public debt is the amount of money that the United States federal government (not the states or banks or corporations or individuals) owes. ... World GDP/capita changed very little for most of human history before the industrial revolution. ...


In contrast to the above studies, one of the leading economists opposing the FairTax, William Gale of the Brookings Institution, published a detailed 2005 study in Tax Notes that estimated a rate of 28.2% (39.3% tax-exclusive) for 2007 assuming full taxpayer compliance and an average rate of 31% (44% tax-exclusive) from 2006–2015 (an increase that accounts for the replacement of an additional $3 trillion in revenue collected through the Alternative Minimum Tax (AMT) impacting the middle class over the 10 year period).[3][35][36] The study also concluded that if the tax base were eroded by 10% due to tax evasion, tax avoidance, and/or legislative adjustments, the average rate would be 34% (53% tax-exclusive) for the 10 year period. The study did not take into consideration the increase in economic activity that Gale expects would result from the imposition of the FairTax. The President's Advisory Panel for Federal Tax Reform performed an analysis to replace the personal income tax (excluding other taxes) with a retail sales tax and found the rate to be 25% (34% tax-exclusive) for 2006 assuming at least 10% evasion.[7] The rate would need to be substantially higher to replace the additional taxes replaced by the FairTax (payroll, corporate, capital gains, estate, and gift taxes). The Treasury Department has refused to release for peer review the detailed figures and methodology used in the tax panel analysis.[27] FairTax proponents, including the Beacon Hill Institute and Dr. Kotlikoff, have criticized the President's Advisory Panel's study as having altered the terms of the FairTax and using unsound methodology.[31][27] William G. Gale is vice president and director of the Economic Studies Program at the Brookings Institution and the Arjay and Frances Miller Chair in Federal Economic Policy. ... The Brookings Institution is a United States nonprofit public policy think tank based in Washington, D.C.. Described in 1977, by TIME magazine as as the nations pre-eminent liberal think tank,[1] the institution is devoted to public service through research and education in the social sciences, particularly...        Alternative Minimum Tax (AMT) is a tax system that is part of the federal income tax system in the United States. ... A monument to the working and supporting classes along Market Street in the heart of San Franciscos Financial District, home to tens-of-thousands of professional and managerial middle class workers each day. ... On January 7, 2005, President George W. Bush announced the establishment of the Presidents Advisory Panel for Tax Reform, a bipartisan panel to advise on options to reform the United States income tax code to make it simpler, fairer, and more pro-growth to benefit all Americans. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        The federal government of the United States imposes a progressive tax on the taxable income of individuals, corporations, trusts, decedents estates, and certain bankruptcy estates. ... The U.S. Treasury building today. ... Peer review (known as refereeing in some academic fields) is a scholarly process used in the publication of manuscripts and in the awarding of funding for research. ...


Distribution of tax burden

Boston University study of the FairTax. Lower rates claimed from a larger tax base, replacing regressive taxes, and wealth taxation.
Boston University study of the FairTax. Lower rates claimed from a larger tax base, replacing regressive taxes, and wealth taxation.
President's Advisory Panel's analysis of a hybrid National Sales Tax. Higher rates claimed on the middle-class for a personal income tax replacement.
President's Advisory Panel's analysis of a hybrid National Sales Tax. Higher rates claimed on the middle-class for a personal income tax replacement.

The FairTax's impact on the distribution of taxation or tax incidence (the effect on the distribution of economic welfare) is a point of dispute. The plan's supporters argue that it would broaden the tax base, be progressive, decrease tax burdens, and start taxing wealth, while opponents argue that a national sales tax would be inherently regressive and would decrease tax burdens paid by high-income individuals.[3] Sales taxes are normally considered regressive, but the FairTax provides a rebate that supporters argue would create a progressive effective rate on consumption. For example, a family of four (a couple with two children) earning about $25,000 and spending this on taxable goods and services, would consume 100% of their income. A higher income family of four making about $100,000, spending $75,000, and saving $25,000, would consume only 75% of their income on taxable goods and services. According to economist William G. Gale of the Brookings Institution, the percentage of income taxed is regressive (using a cross-section time frame).[6] However, when presented with an estimated effective tax rate, the low-income family above would pay a tax rate of 0% on the 100% of consumption and the higher income family would pay a tax rate of 15% on the 75% of consumption (with the other 25% taxed at a later point in time, as savings is tax-deferred).[37] The effective tax rate is progressive on consumption,[2] as a person spending at the poverty level would have an effective tax rate of 0%, whereas someone spending at four times the poverty level would have an effective tax rate of 17.2%.[37] Image File history File links Download high-resolution version (1410x876, 43 KB) I created this image based on information from Comparing Average and Marginal Tax Rates under the FairTax and the Current System of Federal Taxation - A study from Boston University of the Fair Tax Act. ... Image File history File links Download high-resolution version (1410x876, 43 KB) I created this image based on information from Comparing Average and Marginal Tax Rates under the FairTax and the Current System of Federal Taxation - A study from Boston University of the Fair Tax Act. ... For the similarly named institution in Chestnut Hill, see Boston College. ... Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... On January 7, 2005, President George W. Bush announced the establishment of the Presidents Advisory Panel for Tax Reform, a bipartisan panel to advise on options to reform the United States income tax code to make it simpler, fairer, and more pro-growth to benefit all Americans. ... The FairTax (H.R.25/S.1025) is a proposal in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including AMT), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate... First discussed by the Physiocrats in France, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare. ... Welfare economics is a branch of economics that uses microeconomic techniques to simultaneously determine the allocational efficiency of a macroeconomy and the income distribution associated with it. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        A progressive tax is a tax imposed so that the effective... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        A regressive tax is a tax imposed so that the tax... In a tax system and in economics, the tax rate describes the burden ratio (usually expressed as a percentage) at which a business or person is taxed. ... William G. Gale is vice president and director of the Economic Studies Program at the Brookings Institution and the Arjay and Frances Miller Chair in Federal Economic Policy. ... The Brookings Institution is a United States nonprofit public policy think tank based in Washington, D.C.. Described in 1977, by TIME magazine as as the nations pre-eminent liberal think tank,[1] the institution is devoted to public service through research and education in the social sciences, particularly... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Deferred tax is an accounting term, meaning future tax liability or...


Households at the lower end of the income scale spend almost all their income, while households at the higher end are more likely to devote a portion of income to saving; households at the extreme high end of consumption often finance their purchases out of savings, not income.[6] These savings would be taxed when they become purchases. Income earned and saved would not be taxed immediately under the proposal. In other words, savings would be spent at some point in the future and taxed according to that consumption. FairTax advocates state that this would improve taxing of wealth. Economist Laurence Kotlikoff of Boston University states that the FairTax could make the tax system much more progressive and generationally equitable.[2] "Their view that taxing sales is regressive is just plain wrong. Taxing consumption is effectively the same as taxing wages plus taxing wealth."[2] Kotlikoff finds that the FairTax significantly reduces marginal taxes on work and saving, which substantially lowers overall average remaining lifetime tax burdens on current and future workers at all income levels.[9] The Beacon Hill Institute at Suffolk University concluded in a 2007 study on distributional effects that "replacing income and payroll taxes with the FairTax would make the United States federal tax system more progressive than it is now and would benefit the average individual in almost all expenditures deciles."[38] Laurence J. Kotlikoff (January 30, 1951-) is a american professor of economics at Boston University who believes that the USA is going toward an economic catastrophe in the near future. ... Founded in 1991, the Beacon Hill Institute (BHI) is the research arm of the Department of Economics at Suffolk University in Boston. ...


Economist William Gale analyzed a National Sales Tax (though different from the FairTax in several aspects[32][38]) and reported that the overall tax burden on middle-income Americans would increase while the tax burden on the very rich would drop.[6] According to the President's Advisory Panel for Federal Tax Reform report, which compared the personal income tax (excluding other taxes the FairTax replaces) to a sales tax with rebate,[7][27] the percentage of federal taxes paid by those earning from $15,000 – $50,000 would rise from 3.6% to 6.7%, while the burden on those earning more than $200,000 would fall from 53.5% to 45.9%.[7] FairTax supporters argue that replacing the regressive payroll tax — a 12.4% Social Security tax on wages up to $97,500 and a 2.9% Medicare tax (a 15.3% total tax that is often split between employee and employer), corporate tax, and capital gains tax (not included in the Tax Panel study) greatly changes the tax distribution and that the FairTax would relieve the tax burden on middle-class workers.[7][2] The FairTax would broaden the tax base to include all 300 million Americans and an estimated 30 million to 40 million foreign tourists and visitors.[39] In a study on tax base and rate, the Beacon Hill Institute concluded that the FairTax would offer the broadest tax base and increase the federal government's net base to $9.355 trillion from $7.033 trillion of taxable income, which allows the FairTax to have a lower tax rate than current tax law.[40] A study on marginal and average tax rates by Kotlikoff concluded that the FairTax would reduce most households’ average lifetime tax rates.[41] Economists at Boston University concluded that the FairTax would reward low-income households with 26.3% more purchasing power, middle-income households with 12.4% more purchasing power, and high-income households with 5% more purchasing power.[8] On January 7, 2005, President George W. Bush announced the establishment of the Presidents Advisory Panel for Tax Reform, a bipartisan panel to advise on options to reform the United States income tax code to make it simpler, fairer, and more pro-growth to benefit all Americans. ... For other uses, see FICA (disambiguation). ... Corporate tax refers to a direct tax levied by various jurisdictions on the profits made by companies or associations. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        In the United States, individuals and corporations pay income tax on the net total of all their capital gains just as they do on other sorts of income, but the tax rate for individuals is... Purchasing Power- the amount of value of a good/services compared to the amount paid. ...


Predicted effects

Many mainstream economists and tax experts believe consumption taxes, such as the FairTax, would have a positive impact on economic growth, incentives for international business to locate in the U.S., and increased U.S. international competitiveness (border tax adjustment in global trade).[3][5][10] The FairTax is expected to increase cost transparency for funding the federal government and supporters believe it would have advantages with taxing illegal activity and illegal immigrants.[5] The FairTax would be tax-free on mortgage interest (up to the basic interest rate as determined by the Federal Reserve) and donations; however, some law makers have concerns about losing social incentives on home ownership and charitable contributions. There is also concern about the impact to the income tax industry and the difficulty with the aggressive repeal of the Sixteenth Amendment, which would prevent Congress from introducing new income tax legislation in the future.[13] The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... A consumption tax is a tax on the purchase of a good or service. ... World GDP/capita changed very little for most of human history before the industrial revolution. ... International trade is the exchange of goods and services across international boundaries or territories. ... Social engineering is a concept in political science that refers to efforts to systematically manage popular attitudes and social behavior on a large scale, whether by governments or private groups. ... An owner-occupier is a person who lives in a house that he or she owns. ... Amendment XVI in the National Archives Amendment XVI (the Sixteenth Amendment) of the United States Constitution was ratified on February 3, 1913. ...


Economic

For more details on this topic, see Predicted effects of the FairTax: Economic effects
U.S. Rep John Linder holding the 132 page Fair Tax Act in contrast to the more than 60,000 pages of tax code laws and regulations currently in effect.

The FairTax proposal would have effects in many areas that influence the United States. FairTax proponents assert that the proposal would provide tax burden visibility and reduce compliance costs. The cost of federal government would be highly visible as consumers would see most of this cost in a single tax paid every time they purchase a good or service.[2] Under the current tax system, the federal government collects revenue through a wide variety of taxes on individuals and businesses, which may not be fully visible to individual citizens.[42] The efficiency cost of the current tax system—the output that is lost over and above the tax itself—is between $240 billion and $600 billion every year according to a 2005 report from the U.S. Government Accountability Office.[43][44] Supporters argue that the FairTax system would reduce these compliance and efficiency costs by 90% and return a larger share of that money to the productive economy.[2][45] In addition, an estimated $11 trillion is held in foreign accounts (largely for tax purposes), which former Federal Reserve Chairman Alan Greenspan predicts would be repatriated back to U.S. banks if the FairTax were enacted, becoming available to U.S. capital markets, bringing down interest rates, and otherwise promoting economic growth in the United States.[5][46] The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... Image File history File linksMetadata TaxCode. ... Image File history File linksMetadata TaxCode. ... John Elmer Linder (born September 9, 1942), American politician, has been a Republican member of the United States House of Representatives since 1993, representing the 7th District of Georgia (map). ... The Internal Revenue Code (or IRC) (more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, gift taxes, estate taxes... General Accounting Office headquarters, Washington, D.C. The Government Accountability Office (GAO) is the non-partisan audit, evaluation, and investigative arm of Congress, and an agency in the Legislative Branch of the United States Government. ... The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. ... Squalltoonix (born March 6, 1926 in New York City) is an American economist and was Chairman of the Board of Governors of the Federal Reserve of the United States from 1987 to 2006. ... The capital market is the market for securities, where companies and the government can raise long-term funds. ...


Eighty economists, including Nobel Laureate Vernon L. Smith, wrote an open letter to the President, the Congress, and the American people, stating that the FairTax would boost the United States economy.[10] According to the National Bureau of Economic Research and Americans For Fair Taxation, GDP would increase almost 10.5% in the year after the FairTax goes into effect.[45] In addition, the incentive to work would increase by as much as 20%, the economy’s capital stock would increase by 42%, labor supply by 4%, output by 12%, and real wage rate by 8%.[47] A study in 2007 by the Beacon Hill Institute of Suffolk University stated that within five years real GDP would increase 10.7% over the current system, domestic investment by 86.3%, capital stock by 9.3%, employment by 9.9%, real wages by 10.2%, and consumption by 1.8%.[48] Further, studies of the FairTax at Boston University and Rice University suggest the FairTax will bring long-term interest rates down by as much as one third.[47][49] As falling tax compliance costs lower production costs, exports would increase by 26% initially and remain more than 13% above present levels.[45] According to Professor Dale Jorgenson of Harvard University’s Economics Department, revenues to Social Security and Medicare would double as the size of the economy doubles within 15 years after passage of the FairTax.[50] Opponents offer a study commissioned by the National Retail Federation in 2000 that found a national sales tax would bring a 3 year decline in the economy, a 4 year decline in employment and an 8 year decline in consumer spending.[51] The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, commonly called the Nobel Prize in Economics, is a prize awarded each year for outstanding intellectual contributions in the field of economics. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... The National Bureau of Economic Research (NBER) is a private, nonprofit, nonpartisan research organization dedicated to studying the science and empirics of economics, especially the American economy. ... Americans For Fair Taxation (AFFT) is the nations largest, single-issue grassroots organization dedicated to fundamental tax code replacement. ... the economys total quantity of capital goods is called the capital stock This page is a candidate for speedy deletion. ... Welfare economics is a branch of economics that uses microeconomic techniques to simultaneously determine the allocational efficiency of a macroeconomy and the income distribution consequences associated with it. ... The term real wages refer to wages that have been adjusted for inflation. ... Founded in 1991, the Beacon Hill Institute (BHI) is the research arm of the Department of Economics at Suffolk University in Boston. ... President Johnson signing the Medicare amendment. ... The National Retail Federation is the worlds largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants and grocery stores as well as the industrys key trading partners of retail goods and services. ...


Global corporations consider local tax structures when making planning and capital investment decisions. Lower corporate tax rates and favorable transfer pricing regulations can induce higher corporate investment in a given locality. The United States currently has the highest combined statutory corporate income tax rate among OECD countries.[52] Bill Archer, former head of the House Ways and Means Committee, asked Princeton University Econometrics to survey 500 European and Asian companies regarding the impact on their business decisions if the United States enacted the FairTax. 400 of those companies stated they would build their next plant in the United States, and 100 companies said they would move their corporate headquarters to the United States.[14][53] In addition, the U.S. is currently the only one of the 30 OECD countries with no border adjustment element in its tax system.[54] Proponents state that because the FairTax is automatically border adjustable, the 17% competitive advantage, on average, of foreign producers would be eliminated, immediately boosting U.S. competitiveness overseas and at home.[13] The Organization for Economic Co-operation and Development (OECD) is an international organization of those developed countries that accept the principles of representative democracy and a free market economy. ... There are a number of people named Bill Archer: Bill Archer, a politician in the United States Bill Archer, a politician in Manitoba, Canada This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... The Committee on Ways and Means is a committee of the United States House of Representatives. ... Princeton University is a private coeducational research university located in Princeton, New Jersey. ...


Transition

For more details on this topic, see Predicted effects of the FairTax: Transition effects
Stability of the Tax Base: A comparison of Personal Consumption Expenditures and Adjusted Gross Income.
Stability of the Tax Base: A comparison of Personal Consumption Expenditures and Adjusted Gross Income.

If the FairTax bill were passed, permanent elimination of income taxation would not be guaranteed; the FairTax bill would repeal much of the existing tax code, but the Sixteenth Amendment would remain in place. The elimination of the possibility that income taxation would return (through a separate Congressional bill), requires a repeal of the Sixteenth Amendment to the United States Constitution along with expressly prohibiting an income tax.[13] This is referred to as an "aggressive repeal". Separate income taxes enforced by individual states would be unaffected by the federal repeal. Since passing the FairTax would only require a simple majority in each house of the United States Congress along with the signature of the President, and enactment of a constitutional amendment must be approved by two thirds of each house of the Congress, and three-quarters of the individual U.S. states, it is possible that passage of the FairTax bill would simply add another taxation system. If a new income tax bill was passed after the FairTax passage, a hybrid system could develop. However, there is nothing preventing a bill for a national sales tax or value added tax (VAT) on top of today's income tax system. The Americans For Fair Taxation plan is to first pass the FairTax and then to focus grassroots efforts on HJR 16, that calls for the repeal of the Sixteenth Amendment.[13][55] John Linder plans to include a sunset provision in H.R. 25 during the 111th Congress that would repeal the Sixteenth Amendment within 5 years after the implementation of the FairTax or the FairTax goes away.[56] The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... Image File history File links Size of this preview: 800 × 359 pixels Full resolution (828 × 372 pixel, file size: 22 KB, MIME type: image/png) I 14:52, 23 March 2007 (UTC) created this image based on a similar graph by the Americans for Fair Taxation. ... Image File history File links Size of this preview: 800 × 359 pixels Full resolution (828 × 372 pixel, file size: 22 KB, MIME type: image/png) I 14:52, 23 March 2007 (UTC) created this image based on a similar graph by the Americans for Fair Taxation. ... The Personal Consumption Expenditure (PCE) is a price index, like the Consumer Price Index. ... Adjusted gross income (AGI) is a financial term to describe the amount used in the calculation of an individuals income tax liability. ... The Internal Revenue Code (or IRC) (more formally, the Internal Revenue Code of 1986, as amended) is the main body of domestic statutory tax law of the United States organized topically, including laws covering the income tax (see Income tax in the United States), payroll taxes, gift taxes, estate taxes... Wikisource has original text related to this article: The United States Constitution The United States Constitution is the supreme law of the United States of America. ... Amend redirects here. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Value added tax (VAT), or goods and services tax (GST), is... A joint resolution is a legislative measure of the United States of America, designated as S.J.Res (for the Senate version) and H.J.Res (for the House version), which requires the approval of both chambers of the United States Congress. ... In public policy, a sunset provision or sunset clause is a provision in a statute or regulation that terminates or repeals all or portions of the law after a specific date, unless further legislative action is taken to extend it. ... The 111th United States Congress will be in session from noon on January 3, 2009 until noon on January 3, 2011. ...


Individuals under the current system who accumulated savings from ordinary income (by choosing not to spend their money when the income was earned) paid taxes on that income before it was placed in savings. When individuals spend above the poverty level with money saved under the current system, that spending would be subject to the FairTax. People living through the transition may find both their earnings and their spending taxed. Supporters of the plan argue that the current system is no different, since compliance costs and "hidden taxes" embedded in the prices of goods and services cause savings to be "taxed" a second time already when spent. The rebates would supplement accrued savings, covering taxes up to the poverty level.[14] The income taxes on capital gains, social security and pension benefits would be eliminated under FairTax. The FairTax would also eliminate what some claim to be the double taxation on savings that is part of estate taxes. In addition, the FairTax legislation adjusts Social Security benefits for changes in the price level, so a percentage increase in prices would result in an equal percentage increase to Social Security income.[1] Supporters suggest these changes would offset paying the FairTax under transition conditions.[5] This article is about Estate tax in the United States. ...


During the transition, many or most of the employees of the IRS (105,978 in 2005)[57] would face loss of employment.[31] The Beacon Hill Institute estimate is that the federal government would be able to cut $8 billion from the IRS budget of $11.01 billion (in 2007), reducing the size of federal tax administration by 73%.[31] In addition, income tax preparers (many seasonal), tax lawyers, tax compliance staff in medium-to-large businesses, and software companies which sell tax preparation software (such as Drake Software, TaxCut, and TurboTax), could face significant drops, changes, or loss of employment.[13] However, IRS testimony from 2004 stated that 45% of revenue agents and officers would become eligible for retirement in the following 5 years and there is concern about the loss of their work force as their hiring efforts struggle to keep pace with attrition.[58] In addition, the IRS would not go completely out of commission until 3 years after the FairTax was enacted, providing employees time to find other employment.[1] Proponents claim the projected 10.5% growth in the economy during the first year of the FairTax would provide plenty of new jobs to these workers that are typically well educated and well equipped with transferable skills.[13] In the period before the FairTax was implemented, there could be a strong incentive for individuals to buy goods without the sales tax using credit. After the FairTax was in effect, the credit could be paid off using untaxed payroll. If credit incentives do not change, opponents of the FairTax worry it could exacerbate an existing consumer debt problem.[59] Proponents of the FairTax state that this effect could also allow individuals to pay off their existing (pre-FairTax) debt more quickly,[5] and studies suggest lower interest rates after FairTax passage.[47][49]


Other indirect effects

For more details on this topic, see Predicted effects of the FairTax: Other indirect effects

The current federal tax law allows individuals to deduct the home mortgage interest costs, and donations to certain charities, from taxable income. Someone paying a 25% income tax rate would pay $250 in taxes on a $1,000 donation or mortgage interest payment, and then receive $250 back from the government as the $1000 deduction is removed from taxable income.[60] The FairTax is tax free on mortgage interest up to the basic interest rate as determined by the United States Federal Reserve and donations are not taxed.[1] In a 2007 study, the Beacon Hill Institute concluded that total charitable giving would increase under the FairTax, although increases in giving would not be distributed proportionately amongst the various types of charitable organizations.[61] The FairTax may also affect State and local government debt as the federal income tax system provides tax advantages to state and local municipal bonds.[62] Other areas affected may be law enforcement as avoidance of income tax is sometimes used to prosecute members of organized crime syndicates to convict on charges of tax avoidance and tax evasion when insufficient direct evidence exists for other crimes. Under the FairTax proposal, this avenue of law enforcement would disappear as there would be no income tax and, therefore, no income tax evasion. Instead of being guilty of income tax evasion, they would be guilty of failing to submit sales tax. Advocates claim the FairTax would provide incentive for illegal immigrants to legalize as they would otherwise not receive the FairTax rebate.[5] Illegal immigrants would pay the maximum effective tax rate.[1] There would also be no federal tax savings to companies that hire illegal immigrants. Proponents also believe that the FairTax would have positive effects on civil liberties that are sometimes charged against the income tax system, such as social inequality, economic inequality, financial privacy, self-incrimination, unreasonable search and seizure, burden of proof, and due process.[12][63] The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. ... In the United States, a municipal bond or muni is a bond issued by a state, city or other local government, or their agencies. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Tax avoidance is the legal utilization of the tax regime to... 2000 Census Population Ancestry Map Immigration to the United States of America is the movement of non-residents to the United States. ... This article needs cleanup. ... Social inequality refers to disparities in the distribution of material wealth in a society. ... Differences in national income equality around the world as measured by the national Gini coefficient. ... Financial Privacy is a blanket term for a multitude of issues: Financial Institutions ensuring that their customers information remains private to those outside the institution. ... Self-incrimination is the act of accusing oneself of a crime for which a person can then be prosecuted. ... Amendment IV (the Fourth Amendment) of the United States Constitution, which is part of the Bill of Rights, guards against unreasonable searches and seizures. ... In the common law, burden of proof is the obligation to prove allegations which are presented in a legal action. ... In United States law, adopted from English Law, due process (more fully due process of law) is the principle that the government must respect all of a persons legal rights instead of just some or most of those legal rights when the government deprives a person of life, liberty...


Changes in the retail economy

See also: Tax: Economics of taxation, Effect of taxes and subsidies on price

Since the FairTax would not tax used goods, the value would be determined by the supply and demand in relation to new goods.[64] The price differential/margins between used and new goods would stay consistent, as the cost and value of used goods are in direct relationship to the cost and value of the new goods. Because the U.S. tax system has a hidden effect on prices, it is expected that moving to the FairTax would decrease production costs from the removal of business taxes and compliance costs, which is predicted to offset a portion of the FairTax effect on prices.[5] “Taxes” redirects here. ... Taxes and subsidies have the effect of shifting the quantity and price of goods. ... The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). ... Taxes and subsidies have the effect of shifting the quantity and price of goods. ...


Value of used goods

Since the FairTax would not tax used goods, there is a common misunderstanding that this would create a differential, equal to the FairTax, between the price of new and used goods. Such a differential would certainly impact the sale of new goods like vehicles and homes. However, like the income tax system that contains embedded tax cost (see Theories of retail pricing),[4] used goods would contain the embedded FairTax cost. While the FairTax would not be applied to the retail sales of used goods, the inherent value of a used good includes the taxes paid when the good was sold at retail. The value is determined by the supply and demand in relation to new goods.[64] The price differential / margins between used and new goods would stay consistent, as the cost and value of used goods are in direct relationship to the cost and value of the new goods. Throughout this article, the unqualified term dollar and the $ symbol refer to the United States dollar. ...


Theories of retail pricing

Standard supply and demand diagram illustrating taxes effect on prices.

Retail prices are inflated due to embedded taxes and compliance costs passed to the consumer by producers and suppliers.[4] John Linder states the FairTax would eliminate almost all federal taxation costs from the supply chain, which could lower production costs by up to 30%.[45] Americans For Fair Taxation has claimed that the production cost of domestic goods and services could decrease by approximately 22% on average after embedded taxes and compliance costs were removed, leaving the sale nearly the same after taxes.[13] This is based on a study conducted by Dr. Dale Jorgenson, who found that producer prices would drop between 15% and 26% (depending on the type of good/service) after the switch to a consumption based tax.[5] However, Jorgenson's research included all income and payroll taxes regardless of whether they were paid by employees or employers in the 22% embedded tax estimation. (It is also important to note that the Jorgenson model did not capture any reduction in the cost of compliance associated with changing from a complex income tax system to a simpler consumption tax.) This means that Jorgenson assumed that businesses would pass on all the cost savings from the repeal of payroll taxes and income tax withholding to consumers in the form of lower prices. Mathematically, this would have to result in employee take-home pay (net income) remaining unchanged from pre-FairTax levels.[3][65] A diagram showing the effect of a per unit tax on the standard supply and demand diagram. ... A diagram showing the effect of a per unit tax on the standard supply and demand diagram. ... The supply and demand model describes how prices vary as a result of a balance between product availability at each price (supply) and the desires of those with purchasing power at each price (demand). ... Taxes and subsidies have the effect of shifting the quantity and price of goods. ... A supply chain, logistics network, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. ... In economics, the cost-of-production theory of value is the theory that the price of an object is determined by the sum of the cost of the resources that went into making it. ... Dale W. Jorgenson is the Samuel W. Morris University Professor at Harvard University (BA, economics Reed College in Portland, Oregon, in 1955 and a PhD in economics from Harvard in 1959). ... Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. ...


If businesses instead provided employees with their gross pay as expected (including income tax withholding and the employee share of payroll taxes),[31] Arduin, Laffer & Moore Econometrics estimated production costs would decrease by a minimum of 11.55%.[34] This decrease would offset a portion of the FairTax amount reflected in retail prices. These embedded costs include corporate taxes, compliance costs, and the employer share of payroll taxes (see Effect on tax compliance costs). The Beacon Hill Institute shows that it would not matter whether prices fall or rise—the relative tax burden remains the same because if prices increased with the addition of the FairTax, wages would also rise accordingly; or if the federal reserve did not decide to accommodate (does not increase the money supply), then prices would fall and wages would remain at their net rates. Purchasing power for buying consumer goods and services in either situation would remain essentially the same, and the FairTax rate would be the same.[31] Gross income is commonly defined as the amount of a companys or a persons income before all deductions or any taxpayer’s income, except that which is specifically excluded by the Internal Revenue Code, before taking deductions or taxes into account. ... Throughout this article, the unqualified term dollar and the $ symbol refer to the United States dollar. ... In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ...


The decrease in production cost would only slightly apply to imported products, so, according to proponents, it would provide tax advantages for domestic production and increase U.S. competitiveness in global trade (see Border adjustability). Such logic is endorsed by a recent letter to the commission on tax reform by dozens of economists, including Nobel Laureate Vernon L. Smith.[10] To ease the transition, U.S. retailers will receive a tax credit equal to the FairTax on their inventory to allow for quick cost reduction. A study prepared by Nathan Associates for the National Retail Federation, which made many adverse assumptions, represents supporters' worst-case scenario for a consumption tax. The study predicts that the economy will grow only 3% more in ten years than it would have under the income tax and that the increase in consumption will be 1.15% less in the first year relative to what it would have been under the income tax. This study concludes that consumption will be higher in the fourth year and every year thereafter than it would have been under the income tax.[66] The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... The Nobel Prizes (pronounced no-BELL or no-bell) are awarded annually to people who have done outstanding research, invented groundbreaking techniques or equipment, or made outstanding contributions to society. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... The National Retail Federation is the worlds largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants and grocery stores as well as the industrys key trading partners of retail goods and services. ... A consumption tax is a tax on the purchase of a good or service. ...


Effects on tax code compliance

FairTax supporters state that black market or illegal economic activity is largely untaxed under the current tax system. Economists estimate the underground economy in the United States to be between one and three trillion dollars annually.[46][67][68] By imposing a sales tax, black market activity would be significantly taxed when proceeds from such activity are spent on legal consumption. For example, the sale of illegal narcotics would remain untaxed (instead of being guilty of income tax evasion, dealers would be guilty of failing to submit sales tax), but drug dealers would face taxation when they used drug proceeds to buy consumer goods such as food, clothing, and cars. By taxing this previously untaxed money, FairTax supporters state the black market would be paying part of their share of what would otherwise be uncollected income and payroll taxes.[5] It has been suggested that this article or section be merged into underground economy. ... This box:      The underground economy or shadow economy consists of all commerce that is not taxed. ...


Microeconomist Mike Moffatt argued that if there were no net change in retail prices or tax burdens, the licit consumption of goods and services by the underground economy would continue to bear the same tax burden as before. Legal purchases under the current tax regime carry the hidden cost of implicit taxes. When an explicit tax replaces those taxes, the consumption purchases would still bear the same tax burden.[69][unreliable source?] However, the cost paid by the underground economy through embedded taxes is the cost associated with those paying into the income tax base. If black market activity were taxed today, the tax burden on the rest of the population would decrease from the larger base. Likewise, the large base of consumption would have illegal activity paying into the FairTax base. Microeconomics is a branch of Economics that studies how individuals, households, and firms make decisions to allocate limited resources,[1] typically in markets where goods or services are being bought and sold. ... Mike Moffatt is a Canadian economist and economics writer. ...


Tax compliance

"No, No! Not That Way"—Political cartoon from 1933 commenting on a general sales tax over an income tax.

The current income tax system fails to collect on a significant percentage of taxes. The IRS estimates twenty additional cents of taxes are owed on unreported income for every tax dollar collected. In 2001, the IRS estimated this shortfall to be over $312 billion.[70] These figures do not include taxes lost on illicit sources of income, such as illegal drug dealing. Proponents assert that the transparency and simplicity of the FairTax would subject much of this unreported income to taxation. The number of tax collection points would significantly reduce under the FairTax, as only retailers would file a tax return compared to every income earner. The FairTax would reduce the number of tax filers by about 80% (from 145 million to 25 million) and reduce the filing complexity to a simplified state sales tax form.[71][45] Image File history File links Size of this preview: 542 × 599 pixels Full resolution (750 × 829 pixel, file size: 242 KB, MIME type: image/jpeg) Title: No, No! Not That Way Artist: Clifford Berryman Date: June 3, 1933 Location: Library of Congress, Prints and Photographs Division Source: Tax History Project... Image File history File links Size of this preview: 542 × 599 pixels Full resolution (750 × 829 pixel, file size: 242 KB, MIME type: image/jpeg) Title: No, No! Not That Way Artist: Clifford Berryman Date: June 3, 1933 Location: Library of Congress, Prints and Photographs Division Source: Tax History Project... This early political cartoon by Ben Franklin was originally written for the French and Indian War, but was later recycled during the Revolutionary War An editorial cartoon, also known as a political cartoon, is an illustration or comic strip containing a political or social message. ... A sales tax is a consumption tax charged at the point of purchase for certain goods and services. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        An income tax is a tax levied on the financial income...


Research supports the claim that simplified tax systems lead to greater compliance. The International Monetary Fund found that Russia's transition to a flat tax increased income reporting from 52% to 68% in one year. Similar results have occurred in Slovenia.[70] The Government Accountability Office, among others, have specifically identified the negative relationship between compliance and the number of focal points for collection. The federal government would be able to concentrate its entire tax enforcement efforts on a single tax—the FairTax. Retailers would receive an administrative fee equal to the greater of $200 or 0.25% of the remitted tax as compensation for compliance costs.[1] In addition, the overwhelming majority of purchases occur in major retail outlets, which are very unlikely to evade the FairTax and risk losing their business licenses.[31] Economic figures show that 47% of all retail sales are made by just 688 businesses ("Big-Box" retailers). 87% of retail sales are made by 193,000 businesses, which is 3.7% of U.S. businesses.[46] IMF redirects here. ... General Accounting Office headquarters, Washington, D.C. The Government Accountability Office (GAO) is the non-partisan audit, evaluation, and investigative arm of Congress, and an agency in the Legislative Branch of the United States Government. ... This article does not cite its references or sources. ...


FairTax opponents believe that compliance decreases when taxes are not automatically withheld from citizens. Compliance rates also fall when taxed entities, rather than a third party, self-report their tax liability. For example, ordinary personal income taxes can be automatically withheld and are reported to the government by a third party. Taxes without withholding and with self-reporting, such as the FairTax, can see higher evasion rates. In other countries, similar VAT taxes have an average evasion rate of 20%.[27] William Gale has estimated that erosion of the tax base by 10% due to evasion would require an average sales tax rate of 34% (53% tax-exclusive) from 2006–2015 (which also accounts for the additional $3 trillion in revenue collected through the AMT impacting the middle class over the 10 year period) and evasion of 20% would have an average rate of 39% (65% tax-exclusive) for the 10 year period.[35] FairTax proponents, including the Beacon Hill Institute, disagree with those conclusions and published a study which challenges the findings.[32][27] In the United States income tax system, employers are required to withhold a portion of each employees income and pay it directly to the U.S. Internal Revenue Service. ... This article contrasts tax evasion, tax avoidance, tax resistance and tax mitigation. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Value added tax (VAT), or goods and services tax (GST), is...        Alternative Minimum Tax (AMT) is a tax system that is part of the federal income tax system in the United States. ...


The FairTax is a national tax, but can be administered by the states rather than a federal agency.[1] This has a bearing on compliance, as the states' own agencies could monitor and audit businesses within that state. The 0.25% retained by the states amounts to $5 billion the states would have available for enforcement and administration. For example, California should receive over $500 million for enforcement and administration. According to the California 2004–05 budget analysis, this is more than the $327 million California is spending on the state's sales and excise taxes.[72] The FairTax is simpler, but extends to cover services which are not currently subject to the California sales tax. Because the federal money paid to the states would be a percentage of the total revenue collected, John Linder claims the states would have an incentive to maximize collections.[5] Proponents believe that states that choose to conform to the federal tax base would have advantages in enforcement, information sharing, and clear interstate revenue allocation rules.[1][73] Economist Bruce Bartlett suggests that the State may not have sufficient incentive to enforce the tax and that sales taxes have long exempted all but a few services because of the enormous difficulty in taxing intangibles.[29] University of Michigan economist Joel Slemrod argues that states would face significant issues in enforcing the tax. "Even at an average rate of around 5 percent, state sales taxes are difficult to administer."[74]


Underground economy

Opponents of the FairTax argue that imposing a national retail sales tax would drive transactions underground and create a vast underground economy.[3][75] Under a retail sales tax system, the purchase of intermediate goods would not always be taxed, since those goods would produce a retail good that will be taxed. Individuals and businesses may be able to manipulate the tax system by claiming that purchases are for intermediate goods, when in fact they are final purchases that should be taxed. Proponents point out that a business is required to have a registered seller's certificate on file, and must keep complete records of all transactions for six years. Businesses must also record all taxable goods bought for seven years. They are required to report these sales every month (see Personal vs. business purchases).[1] This box:      The underground economy or shadow economy consists of all commerce that is not taxed. ... Throughout this article, the unqualified term dollar and the $ symbol refer to the United States dollar. ...


While many economists and tax experts support a consumption tax, problems could arise with using a retail sales tax rather than a value added tax (VAT).[3] A VAT imposes a tax at every intermediate step of production, so the goods reach the final consumer with much of the tax already in the price, along with some extra overhead. The retail seller has little incentive to conceal retail sales, since he has already paid much of the good's tax. Retailers are unlikely to subsidize the consumer's tax evasion by concealing sales. In contrast, a retailer has paid no tax on goods under a sales tax system. This provides an incentive for retailers to conceal sales and engage in "tax arbitrage" by sharing some of the illicit tax savings with the final consumer.[76] Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        Value added tax (VAT), or goods and services tax (GST), is... In economics and finance, arbitrage is the practice of taking advantage of a price differential between two or more markets: a combination of matching deals are struck that capitalize upon the imbalance, the profit being the difference between the market prices. ...


In the United States, a general sales tax is imposed in 45 states plus the District of Columbia (accounting for over 97% of both population and economic output). Most states also collect a variety of local sales taxes including county, city, and transit taxes.[77] The United States has a large infrastructure for taxing sales that many countries do not have. Proponents respond to the underground economy argument by pointing out that, whereas tax evasion under the current income tax system requires only one person (the payer) to lie on their tax forms, tax evasion under the FairTax requires collusion of both the payer (the retail purchaser) and the payee (the retail seller). Furthermore, the number of individuals required to file taxes drops from approximately 145 million to 25 million, a drop in excess of 80%. This drop in the number of collection points will allow the tax administration to view tax fraud with greater scrutiny.[71] Proponents of the FairTax see a substantial amount of additional tax revenue from those engaging in the black market, as a sales tax would require all who consume to be taxed (see Effects on tax code compliance). Throughout this article, the unqualified term dollar and the $ symbol refer to the United States dollar. ...


Personal vs. business purchases

For an individual to purchase items tax-free for business purposes, the business would be required to be a registered seller with the state sales tax authority, and thereby be subject to audit. The state would issue the business a registered seller's certificate. This would enable the business to purchase tax free from wholesale vendors, but they must give a copy of their registration certificate to the vendor to leave an audit trail.[1] When an item is purchased for business use from a retail vendor, the business would have to pay the tax on the purchase and take a credit against the tax due on their sales tax return. Taxable property and services purchased by a qualified non-profit or religious organization 'for business purposes' would not be taxable.[78]


Businesses would be required to submit monthly or quarterly reports (depending on sales volume) of taxable sales and sales tax collected on their monthly sales tax return.[14] During audits, the business would have to produce invoices for the "business purchases" that they did not pay sales tax on, and would have to be able to show that they were genuine business expenses.[1] Since 145 million individuals would no longer be filing tax returns, there would only be about 25 million businesses that could be audited.[71] Advocates claim that this would greatly increase the likelihood of business audits, making tax evasion behavior much more risky. Additionally, the FairTax legislation has several fines and penalties for non-compliance and authorizes a mechanism for reporting tax cheats and obtaining a reward.[1] To prevent businesses from purchasing everything for their employees, in a family business for example, goods and services bought by the business for the employees that are not strictly for business use would be taxable.[1] Health insurance or medical expenses would be an example where the business would have to pay the FairTax on these purchases.


FairTax movement

Grassroots supporters organize in Orlando, Florida for a FairTax Rally on July 28, 2006.
Grassroots supporters organize in Orlando, Florida for a FairTax Rally on July 28, 2006.

The origins of the FairTax began with a group of businessmen from Houston, Texas, who initially financed what has become the non-partisan political advocacy group Americans For Fair Taxation (AFFT), which has grown into a large grassroots tax reform movement.[11] This organization, founded in 1994, claims to have spent over $20 million in research,[79] marketing, lobbying, and organizing efforts over a ten year period and is seeking to raise over $100 million more to promote the plan. AFFT includes a staff in Houston and a large group of volunteers who are working to get the FairTax enacted.[14] Bruce Bartlett has charged that the FairTax was devised by the Church of Scientology in the early 1990s;[29] however, Representative John Linder told the Atlanta Journal-Constitution that Bartlett confused the FairTax movement with the Scientology-affiliated Citizens for an Alternative Tax System.[80] Leo Linbeck, AFFT Chairman and CEO, stated "As a founder of Americans For Fair Taxation, I can state categorically, however, that Scientology played no role in the founding, research or crafting of the legislation giving expression to the FairTax."[79] Image File history File links Download high resolution version (900x675, 268 KB) Summary Image taken at the Orlando FairTax Rally - Taken By Jonathon Rube with ORLANDO360 More images located at http://tax. ... Image File history File links Download high resolution version (900x675, 268 KB) Summary Image taken at the Orlando FairTax Rally - Taken By Jonathon Rube with ORLANDO360 More images located at http://tax. ... Nickname: Location in Orange County and the state of Florida Coordinates: , Country State Counties Orange Government  - Mayor Buddy Dyer (D) Area  - City 101 sq mi (261. ... is the 209th day of the year (210th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... An advocacy group, interest group or lobbying group is a group, however loosely or tightly organized, doing advocacy: those determined to encourage or prevent changes in public policy without trying to be elected. ... Americans For Fair Taxation (AFFT) is the nations largest, single-issue grassroots organization dedicated to fundamental tax code replacement. ... A grassroots political movement is one driven by the constituents of a community. ... Tax reform is the process of changing the way taxes are collected or managed by the government. ... Bruce Bartlett (b. ... Scientology cross Symbol The Church of Scientology is the largest religious organization devoted to the practice and the promotion of the Scientology belief system. ... The Atlanta Journal-Constitution is the only major daily newspaper of Atlanta and metro Atlanta. ... Citizens for an Alternative Tax System (CATS) is a national grassroots public interest group in the United States. ...


Much support has been achieved by talk radio personality Neal Boortz. Boortz's book (co-authored by Georgia Congressman John Linder) entitled The FairTax Book, explains the proposal and spent time atop the New York Times Best Seller list. Boortz stated that he donates his share of the proceeds to charity to promote the book.[81] In addition, Boortz and Linder have organized several FairTax rallies to publicize support for the plan. Other media personalities have also assisted in growing grassroots support including radio and former TV talk show host Larry Elder, radio host and former Senatorial candidate Herman Cain, Fox News and radio host Sean Hannity, and ABC News co-anchor John Stossel.[82] The FairTax has received additional visibility as one of the issues in the 2008 presidential election on the issue of taxes and the IRS. At a debate on June 30, 2007, several Republican candidates were asked about their position on the FairTax and many responded that they would sign the bill into law if elected.[83][84] The most vocal promoters of the FairTax in the election are Republican candidate Mike Huckabee and the only Democratic candidate to support the plan, longshot Mike Gravel. The Internet, blogosphere, and electronic mailing lists like Yahoo! Groups have contributed to informing, organizing, and gaining support for the FairTax. Many grassroots web sites have been created by supporters to help organize the effort and promote the plan. For other uses, see Talk Radio. ... Neal Boortz (born April 6, 1945), is a U.S. talk radio host. ... John Elmer Linder (born September 9, 1942), American politician, has been a Republican member of the United States House of Representatives since 1993, representing the 7th District of Georgia (map). ... The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... The New York Times Best Seller List is a weekly chart in The New York Times newspaper that keeps track of the best-selling books of the week. ... Larry Elder Laurence Allen Larry Elder (born April 27, 1952 in Los Angeles, California) aka the Sage from South Central is an American libertarian-minded Republican (he has sometimes referred to his views as conservatarian) radio and former TV talk show host and author whose program The Larry Elder Show... Herman Cain (Born December 13, 1945) is a conservative newspaper columnist, African-American businessman, politician and radio talk-show host from Georgia. ... Fox News redirects here. ... Sean Patrick Hannity (born December 30, 1961, in New York City, New York) is an Irish American, conservative broadcaster and political pundit. ... ABC News logo ABC News Special Report ident, circa 2006 ABC News is a division of American television and radio network ABC, owned by The Walt Disney Company. ... John F. Stossel (born 6 March 1947) is a consumer reporter, author and co-anchor for the ABC News show 20/20. ... The United States presidential election of 2008, scheduled to be held on November 4, 2008, will be the 55th consecutive quadrennial president and vice president of the United States. ... is the 181st day of the year (182nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... Main article: United States presidential election, 2008 This article lists official and potential Republican candidates for the President of the United States in the election of 2008. ... Huckabee redirects here. ... Maurice Robert Mike Gravel (IPA: ) (born May 13, 1930), is a former Democratic United States Senator from Alaska, having served for two terms, from 1969 to 1981. ... Blogosphere is a collective term encompassing all blogs and their interconnections. ... Electronic mailing lists are a special usage of email that allows for widespread distribution of information to many Internet users. ... Yahoo! Groups Yahoo! Groups is a service from Yahoo! that provides electronic mailing lists. ... Americans For Fair Taxation (AFFT) is the nations largest, single-issue grassroots organization dedicated to fundamental tax code replacement. ...


See also

FairTax
Part of the U.S. Taxation series
FairTax subarticles

Distribution of the burden
Predicted effects
• Revenue neutrality
The FairTax Book
Americans For Fair Taxation Taxation in the United States is a complex system which may involve payment to at least four different levels of government. ... The FairTax (H.R.25/S.1025) is a proposal in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including AMT), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate... The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... The FairTax (H.R.25/S.1025) is a proposal in the United States Congress for changing tax laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including AMT), payroll taxes (including Social Security and Medicare taxes), corporate taxes, capital gains taxes, gift taxes, and estate... The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... Americans For Fair Taxation (AFFT) is the nations largest, single-issue grassroots organization dedicated to fundamental tax code replacement. ...

v  d  e

       Alternative Minimum Tax (AMT) is a tax system that is part of the federal income tax system in the United States. ... A consumption tax is a tax on the purchase of a good or service. ... A flat tax, also called a proportional tax, is a system that taxes all entities in a class (typically either citizens or corporations) at the same rate (as a proportion on income), as opposed to a graduated, or progressive, scheme. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        The federal government of the United States imposes a progressive tax on the taxable income of individuals, corporations, trusts, decedents estates, and certain bankruptcy estates. ... Tax rates around the world Tax revenue as % of GDP Part of the Taxation series        A sales tax is a tax on consumption and is normally a certain percentage that is added onto the price of goods or services that are purchased. ... Taxation in the United States is a complex system which may involve payment to at least four different levels of government. ...

Notes

  1. ^ a b c d e f g h i j k l m n o p q H.R. 25: Fair Tax Act of 2007. 110th U.S. Congress. The Library of Congress (2007-01-04). Retrieved on 2007-01-14.
  2. ^ a b c d e f g h i j Kotlikoff, Laurence. "The Case for the 'FairTax'" (PDF), The Wall Street Journal, 2005-03-07. Retrieved on 2006-07-23. 
  3. ^ a b c d e f g h i j k l m n o p q r Regnier, Pat. "Just how fair is the FairTax?", Money Magazine, 2005-09-07. Retrieved on 2006-07-20. 
  4. ^ a b c Forbes, Steve. "The American Dream Improving Our Lot", Forbes, 2007-03-22. Retrieved on 2007-03-26. 
  5. ^ a b c d e f g h i j k l m n Boortz, Neal; Linder, John (2006). The FairTax Book, Paperback, Regan Books. ISBN 0-06-087549-6. 
  6. ^ a b c d e Gale, William (March 1998). Don't Buy the Sales Tax. The Brookings Institution. Retrieved on 2006-07-23.
  7. ^ a b c d e f g h National Retail Sales Tax (PDF). President's Advisory Panel for Federal Tax Reform (2005-11-01). Retrieved on 2006-07-23.
  8. ^ a b Kotlikoff, Laurence; Jokisch, Sabine (2007-04-24). Simulating the Dynamic Macroeconomic and Microeconomic Effects of the FairTax (PDF). Boston University & Centre for European Economic Research. Retrieved on 2007-05-13.
  9. ^ a b Kotlikoff, Laurence; Rapson, David (November 2006). Comparing Average and Marginal Tax Rates under the FairTax and the Current System of Federal Taxation (PDF). Boston University. Retrieved on 2006-11-04.
  10. ^ a b c d e An Open Letter to the President, the Congress, and the American people (PDF). Americans For Fair Taxation. Retrieved on 2006-07-23.
  11. ^ a b Committee on Ways and Means Hearing -Statement of Leo Linbeck. Committee on Ways and Means (2005). Retrieved on 2007-01-25.
  12. ^ a b Sipos, Thomas (2007-07-10). A Fair Tax for Progressives and Conservatives. American Chronicle. Retrieved on 2007-07-13.
  13. ^ a b c d e f g h i FairTax Frequently Asked Questions (PDF). Americans For Fair Taxation. Retrieved on 2006-10-18.
  14. ^ a b c d e f g h i Ose, Al (2002). America's Best Kept Secret Fairtax: Give Yourself a 25% Raise, Paperback, Authorhouse. ISBN 1-4033-9189-0. 
  15. ^ a b H.R.25 108th Cosponsors. 108th U.S. Congress. The Library of Congress (2003-01-07). Retrieved on 2006-08-22.
  16. ^ a b S.1493 108th Cosponsors. 108th U.S. Congress. The Library of Congress (2003-07-30). Retrieved on 2006-08-22.
  17. ^ a b H.R.25 109th Cosponsors. 109th U.S. Congress. The Library of Congress (2005-01-04). Retrieved on 2006-08-22.
  18. ^ a b S.25 109th Cosponsors. 109th U.S. Congress. The Library of Congress (2005-01-24). Retrieved on 2006-08-22.
  19. ^ a b c H.R.25 110th Cosponsors. 110th U.S. Congress. The Library of Congress (2007-01-04). Retrieved on 2007-01-14.
  20. ^ S.1025 110th Cosponsors. 110th U.S. Congress. The Library of Congress (2007-03-29). Retrieved on 2007-04-04.
  21. ^ Linbeck, Leo (2006-10-03). Grassroots Leadership Council Conference Call (PDF). Americans For Fair Taxation. Retrieved on 2007-02-04.
  22. ^ Bender, Merrill. "Economists Back FairTax Proposal", Budget & Tax News, The Heartland Institute, 2005-06-01. Retrieved on 2006-07-20. 
  23. ^ a b Linder, John; Boortz, Neal (2007-09-27). The Fair Tax: Saying Goodbye to the Income Tax and the IRS . American Solutions. Retrieved on 2007-10-04.
  24. ^ H.R. 1040 110th Cosponsors. 110th U.S. Congress. The Library of Congress (2007-02-14). Retrieved on 2007-03-14.
  25. ^ a b Vance, Laurence. "There is No Such Thing as a Fair Tax", Ludwig von Mises Institute, 2005-12-12. Retrieved on 2006-07-20. 
  26. ^ The FairTax Calculator. National Retail Sales Tax Alliance. Retrieved on 2006-07-23.
  27. ^ a b c d e f g h i Rebuttal to the tax panel report and recommendations (PDF). Americans for Fair Taxation (November 2006). Retrieved on 2006-11-02.
  28. ^ Boortz, Neal (2007-08-31). A FairTax Note. Cox Radio. Retrieved on 2007-09-01.
  29. ^ a b c Bartlett, Bruce. "Fair Tax, Flawed Tax", Wall Street Journal, 2007-08-26. Retrieved on 2007-08-30. 
  30. ^ Institute for Policy Innovation (2005-09-26). Doesn't Anyone Know the Score?. Press release. Retrieved on 2006-07-20.
  31. ^ a b c d e f g h i j Bachman, Paul; Haughton, Jonathan; Kotlikoff, Laurence J.; Sanchez-Penalver, Alfonso; Tuerck, David G. (November 2006). Taxing Sales under the FairTax – What Rate Works? (PDF). Beacon Hill Institute. Tax Analysts. Retrieved on 2007-03-06.
  32. ^ a b c Burton, David; Mastromarco, Dan (1998-03-16). Rebuttal of the William Gale papers (PDF). The Argus Group. Retrieved on 2006-10-26.
  33. ^ Burton, David; Mastromarco, Dan (1998-02-04). Rebuttal of the Joint Committee on Taxation (JCT) letter (PDF). The Argus Group. Retrieved on 2006-10-26.
  34. ^ a b A Macroeconomic Analysis of the FairTax Proposal (PDF). Arduin, Laffer & Moore Econometrics (February 2006). Retrieved on 2006-11-07.
  35. ^ a b Gale, William (2005-05-16). The National Retail Sales Tax: What Would The Rate Have To Be? (PDF). Tax Break. Tax Analysis. Retrieved on 2005-06-15.
  36. ^ Gregg Esenwein (2005-07-19). The Potential Distributional Effects of the Alternative Minimum Tax (PDF). Center for Democracy and Technology. Retrieved on 2007-05-30.
  37. ^ a b What is the difference between statutory, average, marginal, and effective tax rates? (PDF). Americans For Fair Taxation. Retrieved on 2007-04-23.
  38. ^ a b Tuerck, David G.; Haughton, Jonathan; Bachman, Paul; Sanchez-Penalver, Alfonso; Viet Ngo, Phuong (2007-02). A Distributional Analysis of Adopting the FairTax: A Comparison of the Current Tax System and the FairTax Plan. Beacon Hill Institute. Retrieved on 2007-09-16.
  39. ^ Chambliss, Saxby; Linder, John; King, Steve; Brady, Kevin. "Revise the tax law", The Washington Times, 2005-09-27. Retrieved on 2006-07-23. 
  40. ^ A Comparison of the FairTax Base and Rate with Other National Tax Reform Proposals (PDF). Beacon Hill Institute (2007-02). Retrieved on 2007-09-09.
  41. ^ Kotlikoff, Laurence; Rapson, David (December 2005). Would the FairTax Raise or Lower Marginal and Average Tax Rates (PDF). National Bureau of Economic Research. Retrieved on 2006-10-10.
  42. ^ Edwards, Chris (2005). Downsizing the Federal Government, Hardcover, Cato Institute. ISBN 1-930865-82-1. 
  43. ^ Summary of Estimates of the Costs of the Federal Tax System. U.S. Government Accountability Office (2005-08-26). Retrieved on 2006-07-23.
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  47. ^ a b c Trowell, Christopher. Clean out America’s Economic Arteries. Committee on Ways and Means. Retrieved on 2006-07-24.
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Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 4th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 14th day of the year in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 66th day of the year (67th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 204th day of the year (205th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 250th day of the year (251st in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 201st day of the year (202nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 81st day of the year (82nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... March 26 is the 85th day of the year (86th in leap years) in the Gregorian calendar. ... The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... ReganBooks is a controversial American bestselling imprint or division of HarperCollins book publishing house, headed by editor and publisher Judith Regan, who has been called the worlds most successful publisher.[1] ReganBooks focuses on celebrity authors and controversial topics, sometimes from recent tabloids. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 204th day of the year (205th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 305th day of the year (306th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 204th day of the year (205th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 114th day of the year (115th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 133rd day of the year (134th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 308th day of the year (309th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 204th day of the year (205th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 25th day of the year in the Gregorian calendar. ... 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Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 234th day of the year (235th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 4th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 14th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 88th day of the year (89th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 94th day of the year (95th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 276th day of the year (277th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 35th day of the year in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 152nd day of the year (153rd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 201st day of the year (202nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 270th day of the year (271st in leap years) in the Gregorian calendar. ... Image File history File links FilmRoll-small. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 277th day of the year (278th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 45th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 73rd day of the year (74th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 346th day of the year (347th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 201st day of the year (202nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 204th day of the year (205th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 306th day of the year (307th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 243rd day of the year (244th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 244th day of the year (245th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 238th day of the year (239th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 242nd day of the year (243rd in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 269th day of the year (270th in leap years) in the Gregorian calendar. ... For information on Wikipedia press releases, see Wikipedia:Press releases. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 201st day of the year (202nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 65th day of the year (66th in leap years) in the Gregorian calendar. ... Year 1998 (MCMXCVIII) was a common year starting on Thursday (link will display full 1998 Gregorian calendar). ... is the 75th day of the year (76th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 299th day of the year (300th in leap years) in the Gregorian calendar. ... Year 1998 (MCMXCVIII) was a common year starting on Thursday (link will display full 1998 Gregorian calendar). ... is the 35th day of the year in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 299th day of the year (300th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 311th day of the year (312th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 136th day of the year (137th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 166th day of the year (167th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 200th day of the year (201st in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 150th day of the year (151st in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 113th day of the year (114th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 259th day of the year (260th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 270th day of the year (271st in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 204th day of the year (205th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 252nd day of the year (253rd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 283rd day of the year (284th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 238th day of the year (239th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 204th day of the year (205th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 284th day of the year (285th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 204th day of the year (205th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 198th day of the year (199th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 30th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 304th day of the year (305th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 205th day of the year (206th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 261st day of the year (262nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 22nd day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 171st day of the year (172nd in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 62nd day of the year (63rd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 205th day of the year (206th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 319th day of the year (320th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 215th day of the year (216th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 10th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 171st day of the year (172nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 173rd day of the year (174th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 223rd day of the year (224th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 7th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 19th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 14th day of the year in the Gregorian calendar. ... Image File history File links No higher resolution available. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 322nd day of the year (323rd in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... is the 202nd day of the year (203rd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 322nd day of the year (323rd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 206th day of the year (207th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 219th day of the year (220th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 317th day of the year (318th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 261st day of the year (262nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 205th day of the year (206th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 194th day of the year (195th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 258th day of the year (259th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 216th day of the year (217th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 205th day of the year (206th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 206th day of the year (207th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... is the 91st day of the year (92nd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 249th day of the year (250th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 104th day of the year (105th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 206th day of the year (207th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... [[Media:Italic text]]{| style=float:right; |- | |- | |} is the 50th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 86th day of the year (87th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 206th day of the year (207th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 29th day of the year in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 317th day of the year (318th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 206th day of the year (207th in leap years) in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... is the 342nd day of the year (343rd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 224th day of the year (225th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 237th day of the year (238th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 206th day of the year (207th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 223rd day of the year (224th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 225th day of the year (226th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 241st day of the year (242nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 245th day of the year (246th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 240th day of the year (241st in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 242nd day of the year (243rd in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 250th day of the year (251st in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 219th day of the year (220th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 145th day of the year (146th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 57th day of the year in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 214th day of the year (215th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 212th day of the year (213th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... is the 214th day of the year (215th in leap years) in the Gregorian calendar. ...

References

  • Boortz, Neal; Linder, John (2006). The FairTax Book: Saying Goodbye to the Income Tax and the IRS, Paperback, Regan Books. ISBN 0-06-087549-6. 
  • Boortz, Neal; Linder, John (2008). FairTax: The Truth: Answering the Critics, Paperback, Regan Books. ISBN 978-0061540462. 
  • Kotlikoff, Laurence; Burns, Scott (2004). The Coming Generational Storm: What You Need to Know about America's Economic Future. MIT Press. ISBN 0-262-11286-8. 
  • Ose, Al (2002). America's Best Kept Secret: Fairtax: Give Yourself a 25% Raise, Paperback, Authorhouse. ISBN 1-4033-9189-0. 
  • McCaffery, Edward, J. (2006). Fair Not Flat: How to Make the Tax System Better and Simpler, Paperback, University Of Chicago Press. ISBN 978-0226555614. 
  • Warwick, Nelson (2007). Fair Tax: A Wolf in Sheep's Clothing, Paperback, AuthorHouse. ISBN 978-1434314628. 

The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan. ... ReganBooks is a controversial American bestselling imprint or division of HarperCollins book publishing house, headed by editor and publisher Judith Regan, who has been called the worlds most successful publisher.[1] ReganBooks focuses on celebrity authors and controversial topics, sometimes from recent tabloids. ... ReganBooks is a controversial American bestselling imprint or division of HarperCollins book publishing house, headed by editor and publisher Judith Regan, who has been called the worlds most successful publisher.[1] ReganBooks focuses on celebrity authors and controversial topics, sometimes from recent tabloids. ... MIT Press Books The MIT Press is a university publisher affiliated with the Massachusetts Institute of Technology (MIT) in Cambridge, Massachusetts. ... AuthorHouse, formerly known as 1stBooks, is a print on demand publisher that provides aspiring authors self-publishing services. ... The University of Chicago Press is the largest university press in the U.S. It is operated by the University of Chicago and publishes a wide variety of academic titles, including The Chicago Manual of Style, dozens of academic journals including Critical Inquiry, and a wide array of texts covering... AuthorHouse, formerly known as 1stBooks, is a print on demand publisher that provides aspiring authors self-publishing services. ...

External links

Tax policy related podcasts:
Tax Foundation
Phil's FairTax Show
Wikiquote has a collection of quotations related to:
Taxation
  • FairTax.org - Americans For Fair Taxation
  • John Linder's FairTax Site - Primary sponsor of the bill
  • FairTaxGroups.com - FairTax forum site recommended by Neal Boortz
  • FairTax ScoreCard - List of congressional leaders inclination regarding the FairTax
  • FairTax Calculator - Estimate your tax burden under the FairTax

Legislation Image File history File links Sound-icon. ... “Taxes” redirects here. ... Podcasting is a way of publishing sound files to the Internet, allowing users to subscribe to a feed and receive new audio files automatically. ... Image File history File links This is a lossless scalable vector image. ... Wikiquote is one of a family of wiki-based projects run by the Wikimedia Foundation, running on MediaWiki software. ...

  • H.R.25: Fair Tax Act of 2007 - Text of House bill H.R.25
  • S.1025: Fair Tax Act of 2007 - Text of Senate bill S.1025

  Results from FactBites:
 
What Is the FairTax? - by - The Heartland Institute (208 words)
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.
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.
FairTax - Wikipedia, the free encyclopedia (8723 words)
The FairTax Book, co-authored by Neal Boortz and John Linder, was published on August 2, 2005, as a tool to increase public support for the FairTax Plan.
The current FairTax legislation was introduced by Linder in the House and by Georgia Republican Senator Saxby Chambliss in the Senate.
Under the FairTax, households would receive a monthly tax rebate (known as a "prebate" as it would be paid in advance) equal to the estimated total FairTax paid on poverty level spending according to the poverty guidelines published by the U.S. Department of Health and Human Services.
  More results at FactBites »

 
 

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