Keep Your Entire Paycheck

For the first time in recent history, American workers will get to keep every dime they earn. By eliminating federal income taxes and payroll taxes, your salary or hourly wage is exactly what you’ll deposit in the bank.

Everyone Pays Their Fair Share

Tax evasion and the underground economy cost each taxpayer an additional $2,500 every year! But by taxing new products and services consumed, the FairTax puts everyone in the country at the same level at the cash register. Further, only legal residents are eligible for the prebate.

The IRS Is No Longer Needed

No more complicated tax forms, individual audits, or intrusive federal bureaucracy. Retailers will collect the FairTax just as they do now with state sales taxes. All money will be collected and remitted to the U.S. Treasury, and both the retailers and states will be paid a fee for their collection service. 

The FairTax® Plan

Re-powering the American Dream!

Pay Tax Only On What You Spend

Be in control of your financial destiny. You alone can control your tax burden. If you’re thrifty, you’ll pay lower taxes than somebody who is not. Most importantly, you’ll be taxed fairly.

Get A Tax Refund In Advance On Purchases Of Basic Necessities

The FairTax provides a progressive program called a prebate. This gives every legal resident household an “advance refund” at the beginning of each month so that purchases made up to the poverty level are tax-free. The prebate prevents an unfair burden on low-income families.

Social Security & Medicare Funding

Benefits will not change. The FairTax actually puts these programs on a more solid funding foundation. Instead of being funded by taxes on workers’ wages, which is a small pool, they’ll be funded by taxes on overall consumption by all residents.

                                       The FairTax® Plan and American Business
The FairTax helps U.S. businesses in three vital ways:

1. Currently, every tax a corporation pays is rolled into the price of a product or service, whether it’s income tax, value-added taxes, or simply compliance costs. Now, consumers will see a product’s actual price with no hidden tax components. The FairTax would also prevent large corporations from avoiding paying taxes.

2. Eliminating payroll taxes will significantly lower the cost of labor, therefore enabling businesses to hire more workers. The U.S. will be more appealing to businesses looking to relocate.

3. U.S. exports are expensive, and foreign imports are cheap. The FairTax levels the playing field. Under the FairTax, imported goods and domestically produced goods incur the same U.S. tax. With the present system, U.S. companies and workers must pay income tax and payroll taxes, but foreign goods enter the U.S. entirely free of any tax, other than whatever modest customs duties are levied. The FairTax removes all taxes on exports, restoring the international competitiveness of American manufacturers in the global marketplace.

John E. Linder

Former U.S. Representative
Co-author, "The Fair Tax Book"