WHAT IS THE FAIRTAX?

The Basics Beyond the Basics FAQ Glossary FairTax Calculator Ask the Expert

RESEARCH & BILL

Research Papers The FairTax Bill

RESOURCES

Taxpayer and Policy Links

QUICK LINKS

Sign Up Contribute Become a Member Spread the Word Downloads and Widgets Contact Congress Get FairTax Gear Meet the FairTax Network

ABOUT THE FAIRTAX

ABOUT THE FAIRTAX::

Have a specific question about the FairTax?

Browse or Search Question Archives

Recent "Ask the Expert" Questions:

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 then passed on to the consumers of those goods and services in the form of price increases. When the FairTax removes income, capital gains, payroll, estate and gift taxes, the pre-FairTax prices of these goods and services will fall. The removal of these hidden taxes may also allow wages to rise. Exactly how much prices will fall and wages will rise depends on market forces. For example, in a profession with many jobs and too few to fill them, wages will likely increase more than in fields where there are too many employees and not enough jobs.
[ view other questions ]