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How
will the FairTax affect federal government funding?
The FairTax
plan is devised to be revenue-neutral for the first year of operation.
It will raise the same amount of revenue as raised by the current
law. After the first year, revenue is expected to rise because of
the growth generated by this plan. At that time the American people,
Congress and the President will have to decide whether to lower
the tax rate or to spend the additional revenue.
Under the FairTax,
citizens will better be able to determine if their elected representatives
are acting in their best interest. Since there will be only one
tax rate, Congress will not be able to adopt the typical "divide-and-conquer,"
"hide-and-disguise" strategy employed today to promote special interests.
For the first time in decades, it will be simple to see whether
a politician is advocating an increase in taxes for a program truly
supported by the people in his district. This is not the case with
our current tax code. The FairTax has bi-partisan support from people
in all walks of life. Its supporters share one common belief: that
it is a fairer, simpler, more efficient way to raise federal revenue.
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