The FairTax Act (www.fairtax.org) eliminates barriers preventing U.S. economic comptitiveness by abolishing the unfair taxation of income and replacing it with a federal sales tax administered by the states. The FairTax would finally solve the problem of the underground economy, would reduce the burden of taxation on the middle and lower classes, and eliminate all loopholes.
Specifically, the FairTax would:
* Enable workers to keep their entire paychecks
* Enable retirees to keep their entire pensions
* Refund in advance the tax on purchases of basic necessities
* Allow American products to compete fairly
* Bring transparency and accountability to tax policy
* Ensure Social Security and Medicare funding
* Close all loopholes and bring fairness to taxation
* Abolish the IRS