Under the FAIR TAX as people purchase new products they will pay tax on that. But no money will be taken away from income so more money to spend. If someone makes $1000 a week, (s)he will have that whole $1000 to spend on what is wanted or needed instead of several hundred taken in taxes. Items are only taxed one time so used items would not be taxed. Also a rebate is given out that would be the amount of tax a poor family would pay in purchasing products so essentially they would not pay taxes. This covers Social Security also so truly income would not be taxed at the federal level.
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