What is the FairTax?

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 neutrality.
Repeal of the 16th Amendment through companion legislation.

Meet the FairTax Hall of Shame

It's peak election season and that means peak negative ad season. This year, a number of cynical politicians and their hired guns are attacking their opponents who support the FairTax by blatantly lying and distorting the FairTax itself through a series of false television, radio, print and phone-based campaign ads.

How you can stop it now »

When the Ways and Means Chairman doesn't understand the tax code...

When the Chairman of the Ways and Means Committee can't understand IRS requirements how are less informed taxpayers expected to faithfully obey the law? The complexity of the tax code results in at least $350 billion in underpayments of owed taxes every year and requires $265 billion annually in tax preparation costs. That complexity has now apparently tripped up even the powerful chairman of the Congressional committee responsible for authoring the income tax code.

Read the full story »

See Who the FairTax benefits

In the coming days, we'll be adding new sections to the FairTax site further highlighting all the different audiences and business sectors helped by the FairTax. To get things started, here's a starter list including:

Research & Background

FairTax.org has conducted extensive policy research and commissioned a variety of issue papers on the economic impact of the FairTax on various sectors of industry and individual taxpayers.

Featured Paper: "What the federal tax system is costing you besides your taxes!" Tax compliance facts as you prepare this year's return. Read the paper »

Beacon Hill Institute in Boston has recently completed comprehensive research on the major facets of the FairTax: estimation of the tax base and rate for the FairTax compared to other tax reform proposals, its impact on the economy, on the states, on the distribution of the tax burden and on charitable giving. See the research »

Laurence J. Kotlikoff, Professor of Economics at Boston University and former senior economist, President’s Council of Economic Advisers, has extensively published in the field of public finance and tax reform including papers on the FairTax, from overviews for non-technical readers to fundamental economic for economists. See the research »