The America proposed by the Fair Tax Plan would feature:
- no federal income taxes
- no payroll taxes
- no selfemployment taxes
- no capital gains taxes
- no gift or estate taxes
- no alternative minimum taxes
- no corporate taxes
- payroll withholding
- no taxes on Social Security benefits or pension benefits
- no personal tax forms
- no business income tax record keeping
- no personal incometax filing whatsoever
- no April 15th Tax Day
All of the above would be eliminated by passage of the Fair Tax Plan proposed by H.R.25 and H. S.25. The Fair Tax Plan has been introduced in the 109th Congress and had 54 sponsors in the 108th Congress.
Eighty business and university economists endorse a progressive national retail sales tax plan, as provided by The Fair Tax Plan.
- If passed and signed into law, the Fair tax Plan would:
- Enable workers and retirees to receive 100% of their paychecks and pension benefits.
- Replace all federal income and payroll taxes with a simple, progressive, visible, efficiently collected national retail tax, which would be levied on the final sale of newly produced goods and services.
- Provide an exempt status for people at or below the poverty level.
- Collect the national sales tax every day at the cash register.
- Set a federal tax rate that is revenue neutral, thus raising the same amount of money that currently is raised by other means.
- Continue Social Security and Medicare benefits as provide by law.
- Eliminate all audits of individual taxpayers; only audits of retailers would be needed - lowering the costs of tax colection.
- Collect federal sales tax from every retail consumer in the country, whether a whether a legal citizen or illegal alien - increasing the tax base.
- Collect federal sales tax on all consumption, whether it is generated legally, illegally or in the huge "underground economy"
- Dramatically reduce the compliance costs paid by U.S. businessess, wich would lower overall retail prices.
- Attract the 11.2 trillion dollars of off-shore tax haven money back to the U.S. - along with the millions of jobs we've lost.
- Not tax education because H.R.25 and S.25 define education as an investment, not consumption. This would make education about half as expensive for American families as it is now.
In summary, the economic benefits of the Fair Tax Plan are very positive. The Fair Tax Plan eliminates the tax bias against work, saving, and investment which will lead to higher rates of economic growth, empolyment, lower interest rates, and a higher standard of livng for all Americans.