Jean-Luc Bourdon of Lucent Wealth discusses the Fair Tax proposal to eliminate the IRS and create a national sales tax.
What is the Fair Tax Proposal?
The FairTax is a proposal for a comprehensive consumption tax in the United States, intended to replace all federal income taxes, payroll taxes, gift taxes, and estate taxes. The proposal would eliminate the Internal Revenue Service (IRS) and instead impose a single national sales tax on all new goods and services. The tax would be collected by retailers at the point of purchase, and would be paid by consumers at the time of purchase. Supporters of the FairTax argue that it would simplify the tax code, increase economic growth, and boost individual freedom, while opponents argue that it would disproportionately burden low-income households and could lead to increased tax evasion.