Economics Made Economical

What The Fair Tax Is Not

The Fair Tax is not a regressive tax or a flat tax. Those who spend the most money pay the highest rate of sales tax on their purchases. Those who are impoverished pay no sales tax. The range of tax rates falls along a continuum between 0% and 30%. Where any individual or family lies on that continuum depends directly on how much money they spend in the year.

The Fair Tax does not eliminate Medicare or Social Security or any other government-sponsored programs. In fact it will bring the government more money than the current system, ensuring that Social Security and Medicare can continue to thrive for future generations.

The Fair Tax doesn’t benefit the rich at the expense of the poor. Because it will allow the federal government to bring in more money by ensuring that everyone in America pays their full tax obligations, the Fair Tax will actually end up helping the poor more than the rich and allow them more opportunity for government assistance than at present.

The Fair Tax doesn’t give businesses, Congress, the president, or anyone else an unfair advantage over anyone else in reporting taxes.

The Fair Tax will not result in an increase in the cost of any goods. In fact many prices will decrease from current levels.

The Fair Tax is not a scam, a logical fallacy, a Ponzi Scheme, or any other attempt to defraud anyone out of any money. Those who do not fully understand the system claim it cannot work. Others choose not to learn about it or discuss it openly and honestly because it would create a drastic change in our country. Some people have a hard time dealing with extreme change even when it’s a change for the good of all Americans. As with anything, it will take us all some getting used to seeing what appears to be an extra 30% listed on every receipt without freaking out.

For this reason, the Fair Tax requires that the average American have a basic grasp of economics, budgeting, finance, and some elementary math skills. Sadly some of these skills are things that some Americans tend to forget with age or after their school years have passed.



  1. Barbara

    Excellent article. You’ve exposed the myths and misconceptions so many people have about the Fair Tax. If those that know continue to educate those who don’t know, the possibility of it becoming a reality will grow exponentially.


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