Fair Tax
The Fair Tax is a consumption-based tax that if passed would replace all current taxes at the Federal level. The key components are:
All Federal taxes would be eliminated: personal income, capital gains, alternative minimum, self-employment, and Social Security, Medicare, and payroll taxes.
The Fair Tax is a consumption-based tax rather than an income-based tax. The tax is only applied to new (not used) items at the time of sale.
The Fair Tax is "progressive". A "prebate" of $2,348 per year for a single person or $6,297 per year for a family of four will offset the cost of the taxes on essential goods.
The Fair Tax is "revenue neutral", meaning that all current government services will be fully funded. Programs such as Social Security and Medicare would not be affected.
