Go to www.fairtax.org and read the bill. There is a 'prebate' provision where each individual regardless of income gets a check from the Treasury each month for the amount of sales tax they would pay on spending up to the poverty level. Low income people will only pay on the protion of their spending above the poverty level and so on up the income scale.
The truly working poor will pay no tax under the NRST. That includes SS and Medicare taxes which the accounbt for all of the taxes on the working poor today. Those with large hidden incomes such as drug dealers and other who currently avoid the income tax entirely will pay their 'fair share of taxes" when they head to the BMW showroom!
1. SHOCKER! ...so, your income isn't taxed, eh? Surprise!
2. FCA! "Family Consumption Allowance."
For the first time in our history, the poor (those at or below the Federally defined Poverty Level) will be untaxed when the FairTax is enacted.
For info about virtually every aspect of the proposed FairTax (HR 2525), may I suggest this website: FairTax Facts!
Here's a copy of my letter to Treasury Secretary O'Neill urging him to 'get-on' with tax reform. I the FairTax (HR 2525): Letter To O'Neill!
Cliff Cofer - State Director, AFFT Iowa Volunteer Team