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.
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 ;)
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.