Currently, due to hidden taxes, the average taxpaying citizen pays 40% of their income in taxes. This is due to income tax, Social Security, Medicare, Medicaid and business-to-business taxes which is calculated into everything we buy. The Fair Tax eliminates these taxes and replaces them with a 23% consumption tax. Only new items are taxed, and there's a prebate set-up for the poor in the tax making it fair and lessening the burden on low-income families.
It is estimated that 46.5% of Americans and the 11-20 million immigrants living in the U.S. pay no taxes at all. This has set up a $2 Trillion "shadow economy" fueled by workers "working under the table." According to the IRS, this "shadow economy" owes the government $500 Billion in unpaid taxes. The Fair Tax ensures that everyone pays their fair share.
Finally, Social Security, Medicare, and Medicaid are in danger of bankruptcy with the earliest results effecting the disabled in 2017. The Fair Tax saves these programs without reform and gives our seniors and disabled the continued support of these programs.
