Changes

* Abolish personal and business [[income tax]]es and replace it with a national retail sales tax.

* Abolish personal and business [[income tax]]es and replace it with a national retail sales tax.

* Repeal of the [[16th Amendment]] through companion legislation.

* Repeal of the [[16th Amendment]] through companion legislation.

* Provide each worker a monthly prebate, equal to the tax on "poverty level" income.<ref>Just how fair is the ‘Fair Tax’ CNN Money, September 2005,  http://money.cnn.com/2005/09/06/pf/taxes/consumptiontax_0510/</ref>

* Provide each worker a monthly prebate, equal to the tax on "poverty level" income.<ref>Just how fair is the ‘Fair Tax’ CNN Money, September 2005,  https://money.cnn.com/2005/09/06/pf/taxes/consumptiontax_0510/</ref>

* Close many loopholes under the current system.

* Close many loopholes under the current system.

* Enable retirees to receive their full pension, untaxed, until they spend it.   

* Enable retirees to receive their full pension, untaxed, until they spend it.   

* Enable workers to keep their entire paycheck, untaxed, until they spend it.

* Enable workers to keep their entire paycheck, untaxed, until they spend it.

* Proponents believe the removal of the above will save 265 billion dollars a year in compliance costs under the current tax system,<ref>http://www.fairtax.org/site/PageServer?pagename=about_fairtax_four#neutral</ref> and be more practical than the current system, which includes over 60,000 pages of tax code.<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 believe the removal of the above will save 265 billion dollars a year in compliance costs under the current tax system,<ref>http://www.fairtax.org/site/PageServer?pagename=about_fairtax_four#neutral</ref> and be more practical than the current system, which includes over 60,000 pages of tax code.<ref>67,204-Page Code Confounds Taxpayers, Yet Congress Sits By, USA Today, https://www.usatoday.com/news/opinion/2007-04-03-edit_N.htm?csp=34</ref>

==History==

==History==

===1994-2005===

===1994-2005===

[[Image:FairTax vs. Tax Code 2.jpg‎ |thumb|300px|Congressman [[John Linder]], one of the strongest proponents for the FairTax, illustrates the size of the current tax system vs the FairTax method]]

[[Image:FairTax vs. Tax Code 2.jpg‎ |thumb|300px|Congressman [[John Linder]], one of the strongest proponents for the FairTax, illustrates the size of the current tax system vs the FairTax method]]

The origins of the FairTax began with a group of businessmen from Houston, Texas, who initially financed what has become the political advocacy group Americans For Fair Taxation (AFFT) or FairTax.org, which has grown into a large grassroots tax reform movement.<ref>Just how fair is the ‘FairTax’ CNN Money, September 2005,  http://money.cnn.com/2005/09/06/pf/taxes/consumptiontax_0510/</ref> The Chairman of AFFT, Leo 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 John Linder.<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 origins of the FairTax began with a group of businessmen from Houston, Texas, who initially financed what has become the political advocacy group Americans For Fair Taxation (AFFT) or FairTax.org, which has grown into a large grassroots tax reform movement.<ref>Just how fair is the ‘FairTax’ CNN Money, September 2005,  https://money.cnn.com/2005/09/06/pf/taxes/consumptiontax_0510/</ref> The Chairman of AFFT, Leo 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 John Linder.<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 FairTax became popular among free market [[conservative]]s, [[libertarian]]s, and some economists 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 to look 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 FairTax became popular among free market [[conservative]]s, [[libertarian]]s, and some economists 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 to look 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.