[TheOldLady]

Help! People are saying that the Fair Tax is a tax on income.

I thought it was a tax on purchases and completely eliminated all taxes on income.

[Principled]

The "Fair Tax" is a national retail sales tax. The tax you pay has nothing to do with what your income is. The two are not connected at all.

The tax will be paid on new, retail purchases only. So when a manufacturing company purchases supplies for producing their product, that purchase is not taxed because it's not a retail purchase. But when that product is sold at Home Depot, the tax will be paid by the consumer. When a neighbor holds a garage sale to sell old junk, the junk is not taxed because the junk is used [the idea is to tax retail items once, and only once.]

Labor would not be taxed either - it is an input to production. No FICA taxes under this nrst.

Sorry Taxman to jump in... just thought I'd add what I could ;)

[Taxman]

I am presuming Principled answered your question?

Please to to https://www.fairtax.org/faq for more information about FairTax.

Thanks you for your interest and support.