Guide Note:Fair Tax H.R. 25 is a bill sponsored by Rep. John Linder and Sen. Saxby Chambliss. The bill gets rid of all federal income tax and replaces it with one federal consumption tax. In order to supplement the loss of a national income tax, a federally mandated sales tax of 23% would be levied on all goods and services. Supporters of the tax say it will be progressive on consumption, effectively taxing the wealthiest citizens more because of their increased spending, while leaving those who buy relatively little with a small tax burden. They also make arguments for stronger economic growth and benefits for businesses to remain in the United States. Opponents of the bill argue that the middle class will be unfairly burdened with higher taxes and that the U.S. economy would potentially suffer a decade-long downturn due to the sudden disincentive to spend money.

Fast Facts:

Created by Americans For Fair Taxation
Eliminates the need for IRS
Tax rate: 23% - some say 30%
Encourages saving
Would lead to the repeal of the 16th Amendment
Used goods not taxed
2005: Neal Boortz releases The FairTax Book
Tax would be taken out of the established price of the item, not in addition to the price
This taxing method is called "tax-inclusivity"

Categories

News | Politics | Finance | Political Issues and Controversies | Financial Problems and Crises | Business News

View Note History

Fair Tax

Also try: Flat Tax

The Mahalo Top 7

Wikipedia: FairTax
Linder Fair Tax: FairTax
FairTax.org: Americans For Fair Taxation
The Library of Congress: Fair Tax Act of 2007 Senate
Fair Tax Scorecard: Fair Tax Congressional and Executive Scorecard
New York Times: "The Republicans’ Expensive Tax Promise" (December 14, 2007)
Google News Search: Fair Tax

Fair Tax Recent News Stories

Yahoo! News Search: Fair Tax
CBS News: "FairTax" Boosts Huckabee, Despite Critics (December 28, 2007)
Nashuatelegraph.com: "National Sales Tax a Dangerous Idea" (December 19, 2007)
Baltimore Sun: "Huckabee Taking Aim at Tax Man" (December 19, 2007)
Political Insider: "In Georgia, the Fair Tax Unveils its Role in Presidential Race" (December 12, 2007)
The Associated Press: "Giuliani Assails 'Fair Tax' Plan" (December 3, 2007)
The Washington Times: "FairTax Efforts Popular in GOP" (August 30, 2007)

Fair Tax Background

FairTax History

FairTax.net: Fairtax History
EUROPA: European VAT Tax
Georgians for FairTax: FairTax History
National Retail Sales Tax Alliance: History of the 16th Amendment
BBC News: "SNP Urged to Push for 'Fair Tax'" (1999)

Distribution of the FairTax Burden

The Fair Tax Calculator: Household Tax Rate Calculator
FactCheck.org: Unspinning the FairTax (May 31, 2007)
Cato Institute: "The National Sales Tax: Who Bears the Burden?" (1997)

National Sales Tax

youdebate.com: National Sales Tax Debate
FOXNews: "GOP Discusses National Sales Tax" (2004)
Capitalism Magazine: "National Sales Tax?" (2004)

Predicted Effects

Wikipedia: FairTax Predicted effects
The Beacon Hill Institute: The FairTax and Charitable Giving (2007) (160KB)
NBER: "Simulating the Dynamic Macroeconomic and Microeconomic Effects..." (2005) (297KB)

Fair Tax Commentary and Criticism

Townhall .com: The Fair Tax: America's Last Best Hope (December 18, 2007)
Roanoke.com: "Embedded Taxes Change FairTax Analysis" (2006)
CNN Money.com: "Just How Fair is the 'FairTax'?" (2005)

Fair Tax Message Boards and Blogs

The FairTax Pledge Forum: The Fair Tax Pledge
History Channel: Fair Tax Laws Forum
Donklephant: Is The Fair Tax Really Fair? (December 15, 2007)
The Fair Tax Blog: Questions About the FairTax Plan (December 14, 2007)
First Friday Collective: More Criticism of the National Sales Tax (December 5, 2007)
Middle Class Political Thought and Commentary: The Fair Tax (September 29, 2007)

Central Figures

John Linder

Official Site: US Representative John Linder and John Linder Biography
Wikipedia: John Linder
Washington Post: John Linder Voting Record
OnTheIssues: John Linder on the Issues

Saxby Chamblis

Mahalo's Guide to Saxby Chambliss
Official Site: United States Senator Saxby Chambliss and Saxby Chambliss - US Senator for Georgia
Wikipedia: Saxby Chamblis
Washington Post: Saxby Chambliss Voting Record
OnTheIssues: Saxby Chambliss on the Issues

Related Searches

Taxes | IRS | Tax Reform | Income Tax | Flat Tax | John Linder | Saxby Chambliss

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