FairTax Proposal

The FairTax proposal is a plan to replace all federal income and payroll taxes with a single national consumption tax, called a sales tax, on new goods and services. It aims to simplify the tax system, promote economic growth, and eliminate taxes on savings and investments. Under this system, individuals receive a monthly rebate (prebate) to cover taxes on essentials, ensuring no one is taxed on basic necessities. Supporters argue it encourages work and savings, while opponents worry about higher prices and fairness. Overall, it seeks a transparent, efficient way to fund government services through consumption.