The Fair Tax Plan
Essay title: The Fair Tax Plan
The Fair Tax plan is a comprehensive proposal that replaces all federal income and payroll taxes with an integrated approach including a progressive national retail sales tax; a rebate to ensure no one pays federal taxes up to the poverty level, dollar-for-dollar revenue. This non-exclusive legislation puts an end to all federal, personal gift, estate capitol gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes and replaces them all with one simple federal retail sales tax.
Fair Tax provides a “prebate”, so that no one pays taxes below the poverty line. A prebate is the government giving each individual the amount they would pay in taxes to live up to the poverty line. That way, the Fair Tax eliminates taxes for low-income individuals.
The Fair Tax taxes us only on what we choose to spend, not on what we earn. It doesn’t raise any more or any less; it is designed to be neutral, so its cost is also neutral. The final cost for goods and services changes little under the obvious, and an intelligent solution to the frustration and inequity of our current tax system.
Those who are paid wages “under the table” would no longer have a tax advantage. They too would have to pay sales taxes each time they purchased goods of services, which might as well be the biggest advantage of appointing a consumption tax. Another advantage