Welcome and Intro
Welcome to the FairTax Blog! I'll be using this space as a venue for education on and critical discussion of the FairTax.
The FairTax is a tax reform proposal for tax replacement embodied by HR 25. The FairTax proposes to replace all of the existing federal income, payroll, dividend, capital gains, and business taxes with a single national retail sales tax. This sales tax would fall on all retail level new goods and services. Used goods would not be taxed. Business to business purchases would not be taxed as long as they were used for business purposes. The stated objective is to tax all goods and services once and only once.
In order to overcome the intrisic regressivity of a sales tax the FairTax proposal provides for a Family Consumption Allowance (FCA). The FCA is a payment sent out monthly to each household by the Social Security Administration refunding to each household the amount of federal sales tax they would pay if they were to spend up to the Health and Human Services Departments poverty level for a household of their size.
More details on the proposal will be provided in follow up posts. Please feel free to ask questions or raise objections in the comments section. I will attempt to address questions and objections either in the comments section or in subsequent posts or both.