What Is The Fair Tax?
The Fair Tax is a hypothetical federal tax system that will completely overhaul and replace our current federal tax system. Current Republican presidential contender Herman Cain, a businessman with an excellent understanding of economics is a strong proponent of the Fair Tax. Many in the government oppose the Fair Tax, not usually because they disagree with it on principle but because implementing it would require a radical change in how the public views government funding. Many people–politicians and the public alike–remain somewhat ignorant or misinformed about what the Fair Tax is and what it isn’t.
For starters, What Is The Fair Tax?
1. A federal sales tax that replaces all other forms of federal tax and eliminates the need for employees to file tax return forms.
2. A progressive tax that taxes people who spend more money at a higher rate than those who spend less. It has a maximum percentage cap of 30% and everyone who falls under the poverty level pays 0% tax.
3. A system of taxation that will generate more money for the government by closing the loopholes that currently allow people to cheat their way out of paying taxes.