FactCheck.org’s statement is based on a http://www.taxreformpanel.gov/final-report/TaxReform_Ch9.pdf ,Figure 9.4. The chart depicts a sales tax invented by the Treasury Department that doesn’t repeal regressive payroll taxes, and has a different tax base than the FairTax, causing the reader to wrongly infer the chart portrays the FairTax. Factcheck either simply erred or engaged in intentional deception.

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll taxes with a national retail sales tax on new retail goods and services, creates a household prebate to reimburse taxes payed on purchases up to the poverty level spending, maintains federal revenue at current levels, and, through companion legislation, repeals of the 16th Amendment.

The FairTax will pass when our grassroots membership grows large enough. We need at least 10,000 voters in each of the 41 districts represented by a Member on the House Ways and Means Committee. We need at least 3,500 voters in every other district across the nation. That totals nearly two million voters, working for passage of the FairTax out of over 130 million registered voters that’s 1.5%.

The FairTax and income tax are quoted inclusively. For example, if $3 of every $10 of your income pays taxes then you are paying 30%. With the FairTax, if the after sales tax cost is $10, $2.30 went to taxes at a 23% inclusive rate.
If both taxes were quoted exclusively, a 30% inclusive income tax becomes a 43% exclusive tax, and a 23% inclusive FairTax becomes a 30% exclusive tax.

Bill Archer, former head of the House Ways and Means Committee, asked Princeton University Econometrics to survey 500 European and Asian companies regarding the effect on their business decisions if the US enacted the FairTax. 400 companies stated they would build their next plant in the United States, and 100 companies said they would move their corporate headquarters to the US.

Highly graduated personal incomes taxes and capital gains taxes make it extremely difficult for the middle class to be upwardly mobile. Earning more money means less marginal value for the extra work (due to higher marginal rates) and any attempt to save and invest will result in more taxes on the gains. Let’s promote middle class folks investing more and consuming less by enacting the Fair Tax

The Fairtax founders hired independent experts and put them in a room with a single goal – find a better tax system. They thought the experts would come up with a flat income tax. The experts came back with a national sales tax with a high personal exemption. The prebate achieves the exemption.
Each subsequent study supports the concept of the FairTax as preferable to the current income tax!

A recent (Jan. 16, 2009) article noted that 83 of the US’s top 100 companies maintained subsidiaries in countries with low or no taxes to avoid the punitive nature of US corporate taxes.

Under the FairTax, the money in those subsidiaries would filter back to the US, because corporations would have NO need to move money to other countries to avoid US taxes that force them to get creative.

When you have a consumption tax you pay tax on the money that you spend. If you are rich and you buy more stuff or more expensive stuff you pay more tax. PLUS the fairtax issues a prebate to EVERY head of household in the ammount of the predetermined tax burden on necessities. This is a short list, my recommendation is to read the fairtax book. You dont know enough about it to comment my friend.

Rather than preemptively taking a percentage of your income, the FairTax only collects revenue for the government as you spend.
Poorer people, with less ‘buffer room’ in their household budgets, will be able to economize with the knowledge that every penny they save will be tax free. This provides a potent route towards improving financial situations.

Everyone who is a legal resident in the US would benefit from the fair tax. Read the bill or the book if you can read. If not, ask someone to read the book or the bill to you. It is simple. you get money from the government each month.
Above is condescending, While I encourage all to read it…
What I like most is that it will flip most of the ills we are currently facing, no more space left.

Most people don’t truly understand the burdens our current system puts on us. To do your taxes once a year does not seem at all a burden. However, talk to your local small business owner. They have to deal with tax issues on a daily basis. This costs time and money, not to mention the unfair burden of responsiblity and liability that has been passed on to them in cases where mistakes are made.

It makes the rate of taxation obvious if you spend $100 and on your receipt you see that $23 of it was for taxes. Currently, you see your take home pay (after taxes) and you never see the excise taxes, duties, fees, etc. hidden in the price of everything you buy. When people receive “refunds”, they get back money they have overpaid the government – yet it looks like the govt is giving them money.

Opponents of the FairTax attempt to derail the FairTax revolution by deceptively claiming that the FairTax will impose an ADDITIONAL 30% tax ON TOP of what we presently pay. In reality The FairTax replaces the 22% embedded production taxes with a sales tax totaling 23% of all that we buy, with the prebate covering 100% of the tax on purchases up to the poverty level of spending.

I wonder if the politicians have even thought about the fact that FairTax would turn all illegal immigrants into illegal taxpaying visitors. Huge problem solved.