What is the FairTax®?
That’s a good question. You’ll find a wide range of misinformation on the internet and in newspapers and magazines about what the FairTax is and what the FairTax isn’t. Our job at GFFT (Georgians For Fair Taxation) is to educate the public, so that each person can make an informed decision about the FairTax. We need your help to spread the word, but first, you’ve got to know the facts about the FairTax.
Just the Basics..
The FairTax replaces all federal income and payroll-based taxes by implementing a progressive national retail sales tax. Sound economic research shows this will reinvigorate the economy while providing some much needed economic stability. That’s why the FairTax also includes a prebate to make sure no one pays federal taxes on spending up to the poverty level. Best of all, the government still receives the money it needs to function. It just gets that money from the national retail sales tax, not your paycheck.
Given the current tension in the political landscape as of late, it is important to understand that the FairTax is nonpartisan legislation. It is not the brainchild of Republicans, Democrats, Libertarians, or any other political party. The FairTax was born of American innovation and the belief that there is a better way to fund the federal government. The FairTax represents economic freedom for every American, no matter what political beliefs each may hold.
How does it affect the tax system?
In an unprecedented move toward real tax reform, the FairTax abolishes all federal personal and corporate income taxes. It also eliminates the gift, estate, capital gains, and alternative minimum taxes. Going a step further, the FairTax considers seniors and retirees by eliminating taxes on Social Security and Medicare. And if you are your own boss, you’ll take comfort in knowing the FairTax eliminates self-employment taxes, too. The Fair Tax Act removes most obstacles to economic prosperity and replaces them with one simple, visible, federal retail sales tax, a tax administered primarily by existing state sales tax authorities.
The FairTax is the single best option for real tax reform. Through the FairTax, we are taxed only on what we choose to spend on new goods or services, not on what we earn. That gives each of us the power to control our own financial future. To put it simply, the FairTax is the solution to the frustration and inequality of our current income tax .