Polling
Fair tax


America has a progressive income tax system in which those with higher incomes are taxed more than those whose incomes are lower. This system uses margins, or tax brackets, to determine the percentage of income a person or company must pay. Some claim it is the fairest system because it taxes people on their ability to pay, while others wish to replace our progressive tax system with a flat or fair tax. A Flat Tax system taxes all incomes at the same percentage rate, while a Fair Tax system replaces the income tax with a national sales tax. Opponents warn that tax rates for both of these tax systems could be raised very easily.

A Fair Tax system eliminates all individual and corporate federal income taxes and abolishes the IRS. It creates a national sales tax which would generate enough revenue to fund the federal government. It has been suggested the sales tax rate of a Fair Tax would be about 23% and would be charged on all consumer products - with some protection provided for the poor. Opponents of a Fair Tax system say that a 23% tax on everything purchased would create a huge black market for untaxed products and encourage widespread bartering. Such tax evasion would likely force an increase in the sales tax rate.

Pending Legislation: H.R.25 – FairTax Act of 2021
Sponsor: Rep. Earl Carter (GA)
Status: House Committee on Ways and Means
Chair: Rep. Richard Neal (MA)












Issue Suggestions


Suggest an important issue not listed in this sub-category (). (Maximum 60 Characters)
Suggestion




Poll Opening Date
June 14, 2021
Poll Closing Date
June 20, 2021


Democracy Rules respects the privacy of your information.
See PRIVACY STATEMENT