The FairTax legislation - The best vs the rest

"Where there is an income tax, the just man will pay more and the unjust less on the same amount of income." - Plato

Feature: The FairTax - The best vs the rest

Our horrific tax code has taken center stage as the nation looks toward the next Presidential election.

As candidates assemble and tweak their tax proposals, the FairTax remains the most simple, fair and transparent of any reform plan being discussed today. 

The nonpartisan FairTax legislation is by far, the most transformative tax reform possible for our citizens, American businesses and our struggling economy - and is ready to be implemented immediately.

Almost any tax reform plan, as proposed, would have advantages over our current incomprehensible system of federal taxation. However, the FairTax legislation is the most exhaustively researched tax plan, has broad support among the American people and is before Congress right now. 

There are a lot of different tax proposals and below are some of their core features. Here's how they compare to the FairTax legislation.

Flattening income tax rates

Rates of 9% 15%, 20% and have been proposed, underscoring the need to take loopholes and special interests out of our tax code. But, some plans even keep some write-offs for popular or political reasons.

The FairTax income tax rate is 0%! No federal withholding from your paycheck and the IRS is disbanded as states collect the FairTax.

A true flat income tax - without Congressional modification - would probably be better than the corrupted system we're burdened with today. But economists still support consumption taxes over income taxes for a host of economic reasons. See a detailed comparison with the FairTax here.

Lowering corporate tax rates

When you tax an American business and not foreign competition, jobs leave the country. Plans for a reduced 9% 12.5%, 20% or 25% rate give some hope for the return of the Made in America label but American consumers end up funding the hidden cost of corporate taxes. And unlike the FairTax 0% rate, politicians happily tax you - through them.

Reducing or eliminating payroll taxes

As part of an economic stimulus, this year we have a 2% reduction in payroll taxes. Some candidates want to eventually phase these out completely, while others plan immediately. The FairTax also lets Americans keep this part of their paycheck.

All of the candidate's tax proposals have something else in common: They're all ideas in various levels of development and put forward by a candidate who can't control their plan's 'tweaking' by a divided Congress. The FairTax on the other hand, was not proposed by a polarizing politician but created by economists and is a 'pure' bill in Congress.

The FairTax is also bi-partisan legislation with a nationwide grassroots network dedicated to pushing Congress to support it. This has led to the most co-sponsors in the House and Senate of any tax reform proposal. It’s a huge advantage that decreases the historical Washington practice of giving away tax favors in the tax code and resisting simplification efforts.

The FairTax combines the best features of all the tax proposals and makes them even better. A vast amount of supporting research explains why 80 economists have also endorsed the FairTax.

We're grateful for the thousands of FairTax activists who are promoting true, transformational tax reform.