FairTax

The FairTax is a proposal to replace the current federal income and payroll taxes with a national sales tax on new goods and services. It would be collected only when you make a purchase, making the tax system simpler and more transparent. To offset the impact on low-income households, the FairTax includes a monthly rebate called the "prebate," which refunds taxes on essential spending. Supporters argue it encourages savings, investment, and economic growth by removing taxes on income and business activities, while opponents worry about increased costs for consumers and potential tax evasion.