One of the reasons for the upsurge in support for Mike Huckabee is his advocacy of the Fair Tax Plan. The Fair Tax Plan has spawned a huge and mushrooming grassroots movement. Increasingly supporters are swinging in behind the Huckabee campaign.
What Is The FairTax Plan?
The FairTax is a bill before the U.S. Congress—called H.R. 25 in the House and S. 25 in the Senate—that replaces the federal income tax with a national retail sales tax of 23% on new goods and services for personal use, eliminating the following taxes:
- Personal Income Tax (Federal Tax)
- Social Security (FICA) Tax
- Medicare Tax
- Estate Tax
- Gift Tax
- Capital Gains Tax
- The Alternative Minimum Tax
- Self-Employment Tax
- Corporate Tax..............................
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In summary:The existing tax code would be eliminated. In order to make up for that revenue, a national sales tax would be payable on all goods sold in the United States. A "prebate" would return all of the money you paid in for taxes up to the poverty line. The taxation code would be simplified the paperwork would be reduced to just a few pages and an army of taxation consultants would disappear. The IRS (Internal Revenue Service) would be abolished. Retailers would send in the tax money they collect, and then you would be sent a prebate at the end of the year.
