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The FairTax
- Imposes a 23% (tax-inclusive) sales tax on the purchase of new goods and services in the U.S.
- Lets workers keep their entire paycheck and retirees keep their entire pension.
- Abolishes the IRS and ends all audits of individual taxpayers.
- Replaces the federal income tax. Frees individuals from ever filing a tax return again.
- Replaces all payroll taxes including Social Security and Medicare taxes. Current Social Security and Medicare benefits would not change.
- Replaces corporate and self-employment taxes.
- Eliminates all hidden federal taxes.
- Provides a universal rebate equal to the sales taxes paid on essential goods and services to ensure that no American pays taxes on necessities.
- Replaces all estate, gift, and capital gains taxes.
- Dramatically lowers tax rates for low- and middle-income Americans.
- Closes all tax loopholes.
- Brings accountability to tax policy.
- Lets American-made products compete fairly.
» Read the official bill
The FairTax bill is sponsored by Congressman John Linder (R) of Georgia's 7th congressional district.
» Rep. Linder's web site
» Rep. Linder's FairTax web page
The FairTax bill is co-sponsored by Congressman Collin Peterson (D) of Minnesota's 7th congressional district.
» Rep. Peterson's web site
» Rep. Peterson's FairTax press release
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Individual Tax Freedom Act
- The sales tax would be 15%
- Abolishes the Internal Revenue Service
- Eliminates federal income tax withholding; you keep more of your paycheck (an instant pay raise)
- Eliminates estate, inheritance and gift taxes, and eliminates most excise taxes; your children can receive all of your estate
- Eliminates hidden taxes in the prices for goods (pre-tax prices fall)
- Poor families would be protected with rebates deducted from FICA taxes
- Non-working poor collecting a federal subsidy would receive an increase in their subsidy to offset the tax
- Tax on housing is amortized over 30 years; you would receive a credit when selling your house
- Collects tax revenues now lost to the underground "cash economy"
- Collection would be done by the states (45 states already administer a sales tax)
- Each state would receive 1% of the taxes collected to offset collection costs
- Businesses would receive .5% of the taxes collected to offset their collection costs
- Social Security Administration would collect Social Security payments and Medicare tax
» Read the official bill
The Individual Tax Freedom Act is sponsored by Congressman Billy Tauzin (R) of Louisiana's 3rd congressional district.
» Rep. Tauzin's web site
» Rep. Tauzin's National Retail Sales Tax web page
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