Why the FairTax benefits Democrats


  • The FairTax meets the entire Democratic tax agenda, starting with progressivity. The FairTax is far more progressive than the current income tax system. Under the FairTax, low-income households experience five times the benefit increase as compared to high-income households.
  • The FairTax eliminates the highly regressive tax on wages of the working poor and middle class. The FairTax removes the single most regressive element (the payroll tax) for wage earners.
  • The FairTax is the only plan that completely untaxes the poor. Even a person
    with a zero percent income tax rate today must pay payroll taxes on the first dollar they earn and also pay hidden federal taxes in the prices of everything they buy. 
  • The FairTax stops the export of jobs. Our income tax favors imports over U.S. production by exempting imports from U.S. tax, and we penalize U.S. exports by allowing foreign nations to impose taxes when our goods enter their shores. 
  • The FairTax untaxes education. The FairTax rewards education and upward mobility in the simplest and most powerful way: It eliminates tuition from all federal taxation. 
  • The FairTax is the only plan that targets and taxes existing wealth, not the fruits
    of labor. The FairTax will tax every dollar of accumulated wealth in the most efficient way possible when it is spent. 
  • The FairTax is revenue neutral. The FairTax, at a 23 percent tax rate, raises the
    same amount of money for the federal government as today’s income tax system
    . This means that steep budget cuts are not required to pass meaningful tax reform. 
  • The FairTax promotes the American Dream. The FairTax makes home ownership more affordable because used homes are totally untaxed, and three out of four homebuyers buy used homes. 
  • The FairTax sales tax rate isn’t graduated; everyone’s resources get taxed at the same 23 percent effective rate. What makes the FairTax progressive is its rebate. The rebate is a trivial share of the resources of the rich, but 23 percent of the resources of the poor. Since our current tax system is regressive, adopting the FairTax would achieve progressivity.. 
  • The FairTax is not a political slogan. FairTax.org is nonpartisan. Our broken tax system hurts every American, and it will take leaders from all parts of the political spectrum to fix it