FairTax Act

The FairTax Act is a proposed tax reform that aims to replace federal income and payroll taxes with a national consumption tax on goods and services. Rather than taxing earnings, individuals would pay a flat tax rate when they purchase items. This system is designed to simplify the tax process, encourage savings and investments, and promote economic growth. To protect low-income households, a monthly rebate, called the “prebate,” would cover taxes on essential goods. The goal is to create a fairer, more transparent tax system that incentivizes spending rather than penalizing work.