What
exactly will be taxed?
A 23%, single rate, single-stage tax will be applied to the sale
of all new consumer goods and services at the final point of consumption.
Used items will not be taxed. Business-to-business purchases for
the production of goods and services will not be taxed. Most importantly,
you will keep 100% of your paycheck; there will be no more income,
capital gains, self-employment, gift and corporate taxes. In addition,
prices will drop by an estimated 2030% and all households
will receive a monthly rebate check.
Under the FairTax,
no American will pay taxes on necessities. The rebate will be equivalent
to the tax paid on essential goods and services. The rebate will
be mailed before the tax is actually paid. The rebate will be paid
in equal installments at the beginning of the month. The size of
the monthly rebate will be determined by the federal poverty level
for a particular household size. (Household is defined here as one
or more individuals.)
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