FairTax White Paper eBook
The FairTax® Plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an
integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays
federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through
companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation (H.R. 25 / S. 122)
abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social
Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales
tax – administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The
FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax
is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
FairTax Earning Power – Real Not Diluted Earnings
Under the FairTax proposal not only do more Americans have jobs, but they also take home 100% of their
paycheck, pensions, or Social Security checks. Employees keep 100% of their paycheck. Pensioners keep 100%
of their pension.
FairTax® is a registered trademark for Americans For Fair Taxation®