"The FairTax is a national sales tax that treats every person equally and allows American businesses to thrive, while generating the same tax revenue as the current four-million-word-plus word tax code. Under the FairTax, every person living in the United States pays a sales tax on purchases of new goods and services, excluding necessities due to the prebate. The FairTax rate after necessities is 23% and equal to the lowest current income tax bracket (15%) combined with employee payroll taxes (7.65%), both of which will be eliminated"
Reference
What is the FairTax | What is a Consumption Tax | Tax Reform Solutions - Americans For Fair Taxation. (n.d.). Retrieved from http://www.fairtax.org/site/PageServer?pagename=HowFairTaxWorks