Does the FairTax tax used items?

The FairTax does not tax “used” goods but it is important to note that HR25 has a legal definition of the term “used”.  This is necessary to ensure that items are taxed only once and to preven...



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Are gaming activities taxed under the FairTax?
Yes, gaming activities are taxed under the FairTax; however, given the impracticality of taxing the purchase of lottery tickets or casino chips and the like, the tax is levied on the establishment run...

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How will the FairTax affect military personnel?
Under the Fair Tax, the sale of goods at military exchanges and commissaries is taxable because the FairTax is a federal sales tax. However, the FairTax repeals the entire income tax/payroll tax syst...

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How does the FairTax affect wages and prices?
Americans who produce goods and earn wages must pay significant tax and compliance costs under the current federal income tax. These taxes and costs both reduce after-tax wages and profits and are th...

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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. Exe...

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How does the FairTax affect U.S. competitiveness in foreign trade?
Because the FairTax is automatically border adjustable, the 17 percent competitive advantage, on average, of foreign producers is eliminated, immediately boosting U.S. competitiveness overseas. Ameri...

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Does the FairTax improve compliance and reduce evasion when compared to the current income tax?
The old aphorism that nothing is certain except death and taxes should be modified to include tax evasion. Tax evasion is chronic under any system so complex as to be incomprehensible. As a percenta...

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