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Business-to-business purchases for the production of goods and services are not taxed.

Yeah, but for how long? What did our income tax start at? Something like 1/2 of one percent I think.

You we should keep our current corrupt system because a new system has the POTENTIAL for corruption??? Our Founding Fathers admitted that there is no perfect tax system, but a nation CANNOT have sovereignty without taxation. That's why in such documents as the Federalist Papers (#21) is strongly argued for.

The FairTax is designed to restrain lobbyist efforts to put loopholes in, to the farthest extent possible. Here's a quote from FAQ #5:

"#5: Why not just exempt food and medicine from the tax? Wouldn’t that be fair and simple? Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit. Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after income tax and after payroll tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.

Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send their lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped."

What did our income tax start at? Something like 1/2 of one percent I think.

Close, and it didn't apply to most people

Figures 1 and 2 illustrate this point. Figure 1 shows the personal income tax structure as initially imposed in 1913, while figure 2 indicates what this tax system would look like in 2004 dollars.

Figure 1:
1913 Personal Income Tax System

Figure 2:
1913 Personal Income Tax System
in 2004 Dollars

Tax Rate	Income Level
1%	up to $20,000
2%	$20,000 - $50,000
3%	$50,000 - $75,000
4%	$75,000 - $100,000
5%	$100,000 - $250,000
6%	$250,000 - $500,000
7%	over $500,000

Tax Rate	Income Level
1%	up to $378,383
2%	$378,383 - $ $945,959
3%	$945,959 - $1,418,939
4%	$1,418,939 - $1,891,919
5%	$1,891,919 - $4,729,797
6%	$4,729,797 - $9,459,595
7%	over $9,459,595

(A $3,000 exemption for single filers and $4,000 for a married couple.)

(A $847,125 exemption for single filers and $1,129,494 for a married couple.)