What is The Fair Tax?

The FairTax Plan is a nonpartisan national grassroots campaign to replace the federal income tax system with a progressive national retail sales tax. It provides a "prebate" to ensure No American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement and, through companion legislation, repeal of the 16th Amendment. Please take the time to read this below, it is a good and simple explanation Well written by a local Kansas City native that goes by Weapon2277

     OK, so the Fair Tax is a simple system, yet it's so different from our current tax system that people sometimes have trouble because it really doesn't relate to what we are used to.
    The Fair Tax would basically move our country to a consumption tax system. It would abolish income taxes and corporate taxes, which would be replaced by a sales tax. The expected rate, 23%, seems high, until you understand the system. See, corporations don't PAY taxes like the government would have you think, they pass on those taxes to us, the consumers, in the form of higher prices. Who seriously thinks that a corporation is going to dip into its profits to pay taxes? It doesn't make sense...they pass those costs on. This is known as "embedded taxes" in the products we buy. Not officially taxes, but it is the amount that a company has to increase their prices by to cover the corporate taxes. If there are no corporate taxes to embed in the prices of products, the prices of our products will go down.
     Corporate taxes make it senseless to run businesses in this country. They are the reason that we keep seeing our jobs moved overseas. It simply costs too much money to operate a business here. Because the Fair Tax abolishes those taxes, it would actually make good business sense to locate here! Therefore, the Fair Tax would bring jobs BACK to America! What a wonderful thought!
Now, as so many jobs would come to our country, our unemployment situation would drastically improve. Companies would NEED Americans to work for them. They would be able to pay higher wages and better benefits, which I believe they would do to attract the talent they would need for their new locations in our country.
     Next, understand that the Fair Tax does away with income taxes. So the money you work for and earn, you get to keep! There would be no taxes taken from your paycheck...you'd get to keep it all! You are only taxed when you make a purchase, which means you are no longer punished for saving, investing for your retirement, or working more to get ahead!
Some people mistakenly think that any consumption tax system is harder on the poor. However, the Fair Tax includes a solution to this issue. Every household in the United States would receive what is known as a "prebate" check every month. The amount of the check is equal to the amount of tax that would be collected on essential goods and services. This one is harder for me to explain than it is to understand, but the result of the prebate check is that people at the poverty level pay no net fair tax at all!
So, how does it work? Well, the Fair Tax system closes all those lovely loopholes in our tax code, for one. It expands the tax base to include EVERYONE who purchases goods and services in this country. See, right now, lots of people don't pay their fair share of taxes. How much income tax do you think the drug dealers paid last year on their drug selling income? NONE! How much do you think the prostitutes claimed on their tax return? NONE! What about all the people who work for cash under the table? NONE! You see, right now, only law abiding citizens actually pay into the system, although many who don't pay into the system are eligible to draw from it. With the Fair Tax, EVERYONE ends up paying into the system when they buy anything. So rather than only the law abiding people covering the entire tax burden, it is spread among everyone, and that, my friend, is FAIR!
     OK, so I'm sure I haven't explained it all and quite honestly, I am not an economist. But there are just some things that make good sense! I am EXCITED about a system that would bring jobs HERE instead of encourage them to leave! I'm EXCITED about a system where illegal immigrants and criminals pay into the system instead of just suck from it. I'm EXCITED that there are more and more people wanting to learn more!
    Best thing for you to do is go to www.fairtax.org and read through the FAQ section. You can go to our local Fair Tax group's site at www.fairtaxkc.org
    Mike Huckabee, founder of HuckPAC, is the most outspoken and prominent proponent of the Fair Tax plan. Because he feels so strongly that this system is the answer to our economic mess.
The Fair Tax... Brings jobs BACK to America! Does not punish people for working/earning more, investing, or saving! Forces everyone who makes purchases in the U.S. to pay into the tax system, not just law abiding, working/earning people! Shut down the I.R.S. and return our country to greatness!

Written by; Weapon2277 of Kansas City, MO