As the November elections approach, attacks against the FairTax (HR25) are reaching a fever pitch. In Mississippi, Illinois, Indiana and North Carolina opponents of the FairTax publicize lies about the FairTax.

The most prominent lie is that the FairTax adds 23 percent to the costs of all goods and services. Opponents do not make public that the FairTax eliminates the income, payroll, corporate, gift, estate, capital gains, self-employment, and alternative minimum taxes. The FairTax increases take-home pay by at least 25.3 percent.

When the FairTax is enacted the prices for domestic goods will drop. The amount that they will drop is under debate, but Section 902 of The FairTax Act of 2009 will provide a one-time, 22 percent inventory tax credit to businesses for two years.

Opponents do not make clear that the FairTax allows the consumer to decide if and when they pay taxes. The FairTax is not charged on used homes, cars, furniture, etc. Opponents tell us that a consumption tax will punish the poor and middle-class. They do not tell you that the FairTax “prebate” covers the cost of the FairTax on all necessities. The “prebate” ensures the poor pay zero federal taxes. The middle-class will pay much less than they do now.

Criminals, illegal aliens, and tourists will pay the FairTax and will not receive a “prebate.”

How obvious is it that a federal tax, such as state sales tax, will be much easier to administer and understand? How intuitive is it that administrative costs for the FairTax will be much lower than our current system?

Since the TEA Parties voted the FairTax their number one priority it is certain that TEA Party candidates will support the FairTax if elected. Do you know what your gross pay is? Take it home by voting for FairTax candidates.

Alan Ramsay

Mississippi State Director

Americans For Fair Tax