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Investments and savings will not be taxed under the FairTax system. Since education is clearly an investment in a person’s future, it will not be a taxable item under the FairTax.

If you didn’t have to pay taxes on your money when you earned it, and you didn’t have to pay taxes on money invested in education, how inclined would you be to finally finish that degree or how much more determined would you be to see that your child gets a quality education?

One point of confusion on the FairTax is that it will tax services that are not currently taxed. The truth is that consumers are already paying taxes when they pay for services. The income and payroll taxes that businesses are required to pay are included in the fees they charge for their services. The difference under the FairTax will be that the consumer will know exactly how much of the fee they pay is going to pay taxes and how much is actually going to the company they are patronizing.

Transparency in our tax system is something we have never known, but I think we could get used to it. If you don’t like it we can always hand the power back over to the politicians.

Herman Cain, business man, political conservative, and possible Presidential candidate in 2012 talks about the ways the FairTax plan would supercharge the U.S. economy sooner rather than later.

• The FairTax plan will replace the federal income and payroll based tax system with a simple, transparent and fair national retail sales tax.
• You will bring home your entire paycheck, and then you decide when and how much you pay in taxes when you spend your money.
• Taxes are assessed at the retail, or consumption, level so businesses will be able to compete globally.
• The ability of politicians and lobbyists to manipulate the tax system to benefit themselves and their interests goes away under the FairTax plan.

The benefits of the FairTax plan are many, and the only way to make it happen is to get involved. Visit FairTax.org for more information or read the FairTax bill, H.R. 25, for yourself.

The FairTax plan is intended to be revenue neutral, meaning that it is a tax system that replaces dollar for dollar the current federal income and payroll based taxes. The FairTax bill, however, goes one step further by calling for the repeal of the sixteenth amendment to the U.S. Constitution, which allows Congress to levy an income tax. Without the repeal of the sixteenth amendment we could eventually have both, a federal consumption tax and a federal income tax. So, the repeal of the sixteenth amendment is imperative and in fact is written into the FairTax bill, H.R. 25. If, for whatever reason, the sixteenth amendment has not been repealed within seven years of the FairTax being enacted, then the FairTax bill has a sunset clause that will eliminate the federal sales tax to ensure that we are not saddled with both forms of taxation.

Under the FairTax plan there will be no IRS. There will in fact be no need for the IRS because there will be no federal income taxes to collect or returns to file. Forty-five States today already collect sales taxes, so it will require no major adjustments for those States to also collect the FairTax. Have a listen as Denis Calabrese explains how the FairTax will be collected.