Fair Tax

The Fair Tax is a proposal to replace all federal income taxes with a single, national sales tax on new goods and services. Under this system, people would pay taxes only when they purchase items, with the tax included in the price. It aims to simplify the tax code, promote transparency, and encourage saving and investment. To address concerns about fairness, proposals often include rebates or pre-bates for essentials, so lower-income families are protected. Supporters believe it would boost economic growth and reduce tax evasion, while opponents worry about its impact on consumption and income distribution.