Fair Tax Act

The Fair Tax Act is a proposed tax reform in the United States that aims to replace the current federal income tax system with a national sales tax. Under this plan, consumers would pay a tax on goods and services purchased, while income from wages would not be taxed. The idea is to simplify the tax process, promote fairness by taxing consumption rather than income, and potentially stimulate economic growth. It also includes a monthly "prebate" to help lower-income individuals offset the tax burden on essential goods. Supporters believe it would enhance transparency and efficiency in the tax system.