Under the "Fair Tax" proposal all taxes (business & individual) are eliminated. This would reduce the cost of everything by about 23% on average and allow business/individuals to keep all the money they earn.
In it's place is a consumption tax of 23% on all new goods & services with no exceptions. In addition to the tax is a pre-bate that every house hold would receive, every month, from the government. This pre-bate covers all taxes that an individual/family would pay on items they buy up to the poverty level. This is meant to effectively cancel out the tax on basic necessities like food, for example.
By enacting the fair tax this country would see an economic boom like never before!
Visit FairTax.org for more information. Also, read "The Fair tax Book" by Neal Boortz.