the Fair Tax-Fair For Everyone!

HOUSTON, TX — (MARKET WIRE) — 09/09/2004 — National retail sales tax is a phrase that’s been making headlines. It’s even turned into a significant political debate. But how will changing the tax system affect you?

The most supported national retail sales tax plan is known as the FairTax Act (H.R. 25/S. 1493), a bill now pending in the House Ways and Means Committee with more than 50 congressional co-signers. Majority Leader Tom DeLay will be calling for a vote on this new tax system after the 2004 presidential election.

The FairTax is a progressive, single-rate, federal sales tax collected only once, at the final point of purchase of new goods and services for personal consumption. Used items are not taxed. If the FairTax plan is put into action, here is what it will mean to you:

Learn more about the FairTax.Industry and Economic Research

All Citizens: Receive their full paychecks without any federal withholding of any kind (federal, corporate, payroll, Social Security and Medicare taxes are not taken out of your earnings).

There are no taxes on investments, savings, education or training. In addition, all hidden taxes embedded in the price of goods (averaging 22 percent) and services (averaging 25 percent) are eliminated, thus dropping costs.

Consumers are taxed a revenue-neutral rate – the amount of money needed to support current federal programs – on new retail purchases and services. This rate could fluctuate depending on how many federally funded services the government creates or cuts.

Every household receives a rebate at the beginning of each month to cover the cost of tax paid on all essential goods and services. The size of the rebate is determined by the Department of Health & Human Services’ poverty level multiplied by the tax rate.

Low Income Families: The poor pay no taxes at all, up to the poverty level.

Seniors: Like low-income families, retirees pay no tax up to the poverty level, lowering their effective tax rate while supporting Social Security in the future. Seniors can save and invest with no penalties.

Corporations and Small Businesses: Are completely untaxed. Business-to-business purchases for the production of goods and services are not taxed.

Learn more about the FairTax at http://www.fairtax.org/.

NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only.