Thank you for contacting me regarding your concerns about the Fair Tax. It is good to hear from you.



Last Congress I introduced the Fair Tax and I plan on reintroducing this bill again in the coming weeks. This bill, if enacted, would uproot our current unjust progressive tax code and replace it with a simpler, fairer one by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax. I believe our antiquated tax code, that was implemented in 1913 and has since been modified numerous times, is overly complicated and desperately in need of an overhaul.

The Fair Tax, otherwise known as a national sales tax, would replace our current system which is based on annual income with a tax on goods and services. The Fair Tax is a consumption tax - the more you buy, the more you pay.

The Fair Tax Act would repeal the individual income tax, the corporate income tax, capital gains taxes, all payroll taxes, the self-employment tax, and the Federal estate and gift taxes in lieu of a 23% tax on the final sale of all goods and services. The eradication of these taxes will not only bring about equality within our tax system, it will also bring about simplicity. Social Security and Medicare benefits would remain untouched under the Fair Tax bill; there would be no financial reductions to either one of these vital programs.

And lastly, under this bill, every American would receive a monthly rebate check equal to spending up to the federal poverty level set by the Department of Health and Human Services guidelines. This rebate would ensure that no American pays taxes on the purchase of necessities.

The Fair Tax creates a fairer, simpler code that allows every American the freedom to determine his or her own priorities and opportunities.


As always I appreciate hearing from you. Additionally, if you would like to receive timely email alerts regarding the latest congressional actions and my weekly e-newsletter, please sign up via my web site at: www.chambliss.senate.gov .

The Fair Tax, otherwise known as a national sales tax, would replace our current system which is based on annual income with a tax on goods and services. The Fair Tax is a consumption tax - the more you buy, the more you pay.

There's one thing I have always wondered about the Fair Tax.....let's say that person A works in a factory, and makes $40,000 a year. His necessary purchases --aside from things like gas and groceries, that everyone has to buy-- for his job are __1) a Coleman cooler for his lunch __ 2) a few sets of work clothes.

Person B owns a small business, and his profit for the year is $40,000. In order to make that 40k in profits, however, he has to purchase raw materials that cost $100,000.

I'm just asking here; Person A and person B are both netting 40k per year. Won't person B's resultant tax bill (iow, the amount he will end up paying) be far higher than person A's....?!?!?

I see nothing "fair" about that.

Here's how it would work;

All of the Government Servants who were laid-off by the dissolution of the IRS will be employed in the new Office of Fair Taxation.

They would mandate that Person A must buy only the most expensive Coleman cooler, and the value of his work clothes must equal the cost of Person B's operating expenses and raw materials.

See, everybody wins.

I do not know everythig there is to know about the subject.

I do know that under the fair tax law, there will be no capital gains tax.

I also know there are some prebates and deductions.

You should pick up John Linders book.


There's one thing I have always wondered about the Fair Tax.....let's say that person A works in a factory, and makes $40,000 a year. His necessary purchases --aside from things like gas and groceries, that everyone has to buy-- for his job are __1) a Coleman cooler for his lunch __ 2) a few sets of work clothes.

Person B owns a small business, and his profit for the year is $40,000. In order to make that 40k in profits, however, he has to purchase raw materials that cost $100,000.

I'm just asking here; Person A and person B are both netting 40k per year. Won't person B's resultant tax bill (iow, the amount he will end up paying) be far higher than person A's....?!?!?

I see nothing "fair" about that.

I do not know everythig there is to know about the subject.

I do know that under the fair tax law, there will be no capital gains tax.

I also know there are some prebates and deductions.

You should pick up John Linders book.Sisko, you copy and paste article after article advocating the 'fair tax', and yet when someone asks a fair and legitimate question the best you can do is suggest they buy somebody else's book?

That's pretty weak.