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'''The Fair Tax''' (FairTax) is a tax proposal that replaces all federal income taxes, including; corporate [[income taxe]]s, gifts, estate, capital gains, alternative minimum, [[Social Security]], [[Medicare]], and self employment taxes, with a federal retail [[sales tax]]. <ref> Americans For Fair Taxation, “About the FairTax,” http://www.fairtax.org/site/PageServer?pagename=about_main</ref>  

'''The Fair Tax''' (FairTax) is a tax proposal that replaces all federal income taxes, including; corporate [[income taxe]]s, gifts, estate, capital gains, alternative minimum, [[Social Security]], [[Medicare]], and self employment taxes, with a federal retail [[sales tax]]. <ref> Americans For Fair Taxation, “About the FairTax,” http://www.fairtax.org/site/PageServer?pagename=about_main</ref>  

Instead of being taxed on what citizens earn, the FairTax taxes on what citizens buy, this is known as a voluntary consumption tax. The estimated rate for the FairTax is 23 percent<ref> "Embedded Taxes Change Fair Tax Analysis",http://www.roanoke.com/editorials/commentary/wb/wb/xp-51569</ref>. One main proponent of the FairTax is [[Republican]] presidential primary contender and former [[Arkansas]] Governor, [[Mike Huckabee]].  

Instead of being taxed on what citizens earn, the Fair Tax taxes on what citizens buy, this is known as a voluntary consumption tax. The estimated rate for the Fair Tax is 23 percent<ref> "Embedded Taxes Change Fair Tax Analysis",http://www.roanoke.com/editorials/commentary/wb/wb/xp-51569</ref>. One main proponent of the FairTax is [[Republican]] presidential primary contender and former [[Arkansas]] Governor, [[Mike Huckabee]].  

==Proposal==  

==Proposal==  

The basic FairTax system includes the following<ref> American For Fair Taxation, http://www.fairtax.org/site/PageServer?pagename=about_main</ref>;

The basic Fair Tax system includes the following<ref> American For Fair Taxation, http://www.fairtax.org/site/PageServer?pagename=about_main</ref>;

*Abolishment of the [[Internal Revenue Service]] (IRS).

*Abolishment of the [[Internal Revenue Service]] (IRS).

===1986-2005===

===1986-2005===

The FairTax was designed by [[Americans for Fair Taxation]] (AFFT), which is led by businessman Leo Linbeck<ref> Just how fair is the ‘FairTax’ CNN Money, September 2005,  http://money.cnn.com/2005/09/06/pf/taxes/consumptiontax_0510/</ref>. Linbeck stated that Americans have to pressure the government to come up with a better way of taxation, he said, “It is painfully obvious that [[Washington, D.C.]] insiders so closely linked with the status quo cannot be trusted to overturn the corrupt system of federal taxation. This effort will have to be driven by the American people<ref>Americans For Fair Taxation http://boortz.com/nuze/200510/10132005.html</ref>."  The organization hired expert to look into an idea for a better tax system, they spent 23 million dollars in coming up with the idea of the FairTax. The organizations findings were combined into a book, “The FairTax Book: Saying Goodbye to the Income Tax and the IRS,” which Linbeck co-authored with Republican Congressman<ref> “The Fair Tax Book”,2005, http://www.amazon.com/Fair-Tax-Book-Saying-Goodbye/dp/0060875496/ref=sr_1_1/102-3275846-3467353?ie=UTF8&s=books&qid=1184106196&sr=1-1</ref>

The Fair Tax was designed by [[Americans for Fair Taxation]] (AFFT), which is led by businessman Leo Linbeck<ref> Just how fair is the ‘FairTax’ CNN Money, September 2005,  http://money.cnn.com/2005/09/06/pf/taxes/consumptiontax_0510/</ref>. Linbeck stated that Americans have to pressure the government to come up with a better way of taxation, he said, “It is painfully obvious that [[Washington, D.C.]] insiders so closely linked with the status quo cannot be trusted to overturn the corrupt system of federal taxation. This effort will have to be driven by the American people<ref>Americans For Fair Taxation http://boortz.com/nuze/200510/10132005.html</ref>."  The organization hired experts to look into an idea for a better tax system, they spent 23 million dollars in coming up with the idea of the Fair Tax. Their findings were combined into a book, “The FairTax Book: Saying Goodbye to the Income Tax and the IRS,” which Linbeck co-authored with Republican Congressman<ref> “The Fair Tax Book”,2005, http://www.amazon.com/Fair-Tax-Book-Saying-Goodbye/dp/0060875496/ref=sr_1_1/102-3275846-3467353?ie=UTF8&s=books&qid=1184106196&sr=1-1</ref>

The Fair Tax became popular among free market conservatives, libertarians, and some economist in recent years. The complication and wasted bureaucracy of the [[Internal Revenue Service]],government pressure on citizens to reveal information and records, and the loopholes in the current tax system, created the incentive the push for a new way of taxation in the United States. Some [[Democrats]] also sought a tax system that would rid them current income tax, which they claim to be discriminate.

The Fair Tax became popular among free market conservatives, libertarians, and some economist in recent years. The complication and wasted bureaucracy of the [[Internal Revenue Service]], government pressure on citizens to reveal information and records, and the loopholes in the current tax system created the incentive the push for a new way of taxation in the United States. Some [[Democrats]] also sought a tax system that would rid them current income tax, which they claim to be discriminate.

In the last 20 years the [[United States]] tax system has been changed over 14,000 times, critics claimed that this has led to an abundance of complexities which lead to its being an inefficient system. In 2003, United States Senator [[Saxby Chambliss]], a Republican, and Senator [[Zell Miller]] a Democrat; introduced a by-partisan version of the FairTax. Although the bill had some support in the [[Senate]], it eventually lost in a 50-50. Senator [[Sam Brownback]] later stated the challenges of tax reform, “When you take (the tax code) on straight on, you take on every lobbyist,"

In the last 20 years the [[United States]] tax system has been changed over 14,000 times, critics claimed that this has led to an abundance of complexities which lead to its being an inefficient system. In 2003, United States Senator [[Saxby Chambliss]], a [[Republican]], and Senator [[Zell Miller]] a Democrat; introduced a by-partisan version of the Fair Tax. Although the bill had some support in the [[Senate]], it eventually lost in a 50-50. Senator [[Sam Brownback]] later stated the challenges of tax reform, “When you take (the tax code) on straight on, you take on every lobbyist,"

===2005-2007===

===2005-2007===

Former Federal Reserve Chairman, [[Alan Greenspan]], called for a federal sales tax to replace the broken income tax in 2005.  "Since the exemplary 1986 reform, the tax code has drifted back to be overly complicated and burdened by higher marginal rates and by many special provisions that have undesirably narrowed the tax base," Greenspan stated at a Presidential Advisory counsel<ref>Greenspan: "Consumption Tax COuld Help Economy",http://www.foxnews.com/story/0,2933,149298,00.html</ref>.  

Former Federal Reserve Chairman, [[Alan Greenspan]], called for a federal sales tax to replace the broken income tax in 2005.  "Since the exemplary 1986 reform, the tax code has drifted back to be overly complicated and burdened by higher marginal rates and by many special provisions that have undesirably narrowed the tax base," Greenspan stated at a Presidential Advisory counsel<ref>Greenspan: "Consumption Tax COuld Help Economy",http://www.foxnews.com/story/0,2933,149298,00.html</ref>.  

In 2005 congress created a bill to enact the FairTax (H.R. 25; Senate Bill 1943), it had the support of more then 54 co-sponsors, and both Senate and House minority leaders, [[Dennis Hassert]] and [[Tom DeLay]]<ref>“The FairTax: A Trogan Horse For America,” Jews For Preservation of Firearms Ownership,  http://www.jpfo.org/fairtax.htm#fn1</ref>. Although the bill received the most support ever for any fundamental tax reform bill, it failed to pass. After the elections of 2004, Georgia Republican Congressman, [[John Linder]], reintroduced the FairTax on the first day of the 109th congress<ref> “Linder Reintroduces FairTax Legislation”, http://www.johnlinder.com/News_Details.asp?NewsID=128</ref>. Congressman Linder stated before congress, “The time is ripe for fundamental tax and a completely new Federal tax regime. I am pleased to reintroduce my FairTax proposal today reform, and look forward to the Congress creating a fairer, simpler tax system that advances our core goals of lower taxes and more freedom for our citizens."<ref> “Linder Reintroduces FairTax Legislation”, http://www.johnlinder.com/News_Details.asp?NewsID=128</ref>.”

In 2005 congress created a bill to enact the Fair Tax (H.R. 25; Senate Bill 1943), it had the support of more then 54 co-sponsors, and both Senate and House minority leaders [[Dennis Hassert]] and [[Tom DeLay]]<ref>“The FairTax: A Trogan Horse For America,” Jews For Preservation of Firearms Ownership,  http://www.jpfo.org/fairtax.htm#fn1</ref>. Although the bill received the most support ever for any fundamental tax reform bill, it failed to pass. After the elections of 2004, Georgia Republican Congressman, [[John Linder]], reintroduced the FairTax on the first day of the 109th congress<ref> “Linder Reintroduces FairTax Legislation”, http://www.johnlinder.com/News_Details.asp?NewsID=128</ref>. Congressman Linder stated before congress, “The time is ripe for fundamental tax and a completely new Federal tax regime. I am pleased to reintroduce my Fair Tax proposal today reform, and look forward to the Congress creating a fairer, simpler tax system that advances our core goals of lower taxes and more freedom for our citizens."<ref> “Linder Reintroduces FairTax Legislation”, http://www.johnlinder.com/News_Details.asp?NewsID=128</ref>.”

In 2007 support for the FairTax bill has grown to include 60 co-sponsors<ref>FairTax Gains Support, http://www.fairtaxblog.com/20070508/record-sixty-co-sponsors-for-fairtax-bill-hr-25/</ref>.  

In 2007 support for the FairTax bill has grown to include 60 co-sponsors<ref>FairTax Gains Support, http://www.fairtaxblog.com/20070508/record-sixty-co-sponsors-for-fairtax-bill-hr-25/</ref>.  

One of the most outspoken supporters for the Fair Tax is Republican presidential primary candidate, [[Mike Huckabee]], he stated that the FairTax, "would put the IRS out of business, but put Americans in business<ref> Massachusetts For Mike Huckabee, http://massachusettsforhuckabee.blogspot.com/search/label/Tax%20Plan</ref>."  

One of the most outspoken supporters for the Fair Tax is Republican presidential primary candidate, [[Mike Huckabee]], he stated that the Fair Tax, "would put the IRS out of business, but put Americans in business<ref> Massachusetts For Mike Huckabee, http://massachusettsforhuckabee.blogspot.com/search/label/Tax%20Plan</ref>."  

== Support==

== Support==

The main support for the FairTax comes from the Republican Party, as while as libertarians. Conservatives have continued to push for Republican presidential candidates to support the congressional FairTax bill, one such group was set up in Indiana, ‘Hoosier for Fair Taxation’<ref>”Fair Tax Supporters Vent Frustration”, June 2007, http://www.theindychannel.com/news/13651607/detail.html</ref>. One such instance was when Republican presidential primary candidate, [[Fred Thompson]], attended a rally which was crowded with supporters of the national sales tax system<ref>”FairTaxer's continue to “flex their muscles”, July 2007, http://www.fairtax.org/site/PageServer?pagename=news_feature</ref>.  

The main support for the Fair Tax comes from the [[Republican Party]] as well as [[Libertarian]]s. Conservatives have continued to push for Republican presidential candidates to support the congressional Fair Tax bill, one such group was set up in Indiana, ‘Hoosier for Fair Taxation’<ref>”Fair Tax Supporters Vent Frustration”, June 2007, http://www.theindychannel.com/news/13651607/detail.html</ref>. <ref>”FairTaxer's continue to “flex their muscles”, July 2007, http://www.fairtax.org/site/PageServer?pagename=news_feature</ref>.  

All Democrats’ presidential primary candidates have said that they do not support the FairTax proposal currently in congress. [[Mike Huckabee]] has made a national sales tax as one of his main platforms. Economist, such as [[Allan Greenspan]], have also shown support for the FairTax.<ref>Greenspan: Consumption Tax could Help Economy, Fox News, March 2005, http://www.foxnews.com/story/0,2933,149298,00.html</ref>

All Democrats’ presidential primary candidates have said that they do not support the Fair Tax proposal currently in congress. [[Mike Huckabee]] has made a national sales tax as one of his main platforms. Economist, such as [[Allan Greenspan]], have also shown support for the FairTax.<ref>Greenspan: Consumption Tax could Help Economy, Fox News, March 2005, http://www.foxnews.com/story/0,2933,149298,00.html</ref>

==Criticism==  

==Criticism==  

Republican presidential candidate, [[Rudy Giuliani]], criticized the FairTax when addressing a group at the [[University of Florida]] in July, 2007<ref> “Giuliani Jeered For Opposing Flat Tax”, Associated Press, July 2007, http://www.forbes.com/feeds/ap/2007/07/07/ap3891710.html</ref>. The former mayor stated that although he had to “study it some more I don't think a fair tax is realistic change for America. Our economy is dependent upon the way our tax system operates<ref> “Giuliani Jeered For Opposing Flat Tax”, Associated Press, July 2007, http://www.forbes.com/feeds/ap/2007/07/07/ap3891710.html</ref>.."  

Republican presidential candidate, [[Rudy Giuliani]], criticized the Fair Tax when addressing a group at the [[University of Florida]] in July, 2007<ref> “Giuliani Jeered For Opposing Flat Tax”, Associated Press, July 2007, http://www.forbes.com/feeds/ap/2007/07/07/ap3891710.html</ref>. The former mayor stated that although he had to “study it some more I don't think a fair tax is realistic change for America. Our economy is dependent upon the way our tax system operates<ref> “Giuliani Jeered For Opposing Flat Tax”, Associated Press, July 2007, http://www.forbes.com/feeds/ap/2007/07/07/ap3891710.html</ref>.."  

Proponents of the tax argue that the FairTax would be more practical then the current income tax, which includes 59,999 pages of the tax code documents that lobbyist have worked through congress<ref> 67,204-Page Code Confounds Taxpayers, Yet Congress Sits By, USA Today, http://www.usatoday.com/news/opinion/2007-04-03-edit_N.htm?csp=34 </ref>.

Proponents of the tax argue that the Fair Tax would be more practical then the current income tax, which includes 59,999 pages of the tax code documents that lobbyist have worked through congress<ref> 67,204-Page Code Confounds Taxpayers, Yet Congress Sits By, USA Today, http://www.usatoday.com/news/opinion/2007-04-03-edit_N.htm?csp=34 </ref>.

==External Links==

==External Links==