Fair Tax Proposal

The Fair Tax Proposal is a system that replaces current income and payroll taxes with a single national sales tax on new goods and services. Under this plan, individuals would pay taxes only when they purchase items, not on earnings or investments. The idea is to simplify the tax code, promote economic growth, and ensure everyone contributes fairly. To support lower-income families, a pre-paid rebate—called a "prebate"—would cover the tax on essential purchases, making the system progressive. Overall, it aims to create a transparent, efficient, and fair way to fund government functions.