Would FairTax tax services?

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.

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