Transitioning from Income Tax to FairTax

What will tax season be like for the average Joe or Jolene? Well, to begin with April 15 will be just another beautiful Spring day. There will be no income tax filing, so there will be no tax preparation. There will be no need to keep all your receipts. You’ll never again have to ask, “How many years do I have to keep all this stuff?” Your accountant will be able to actually earn his fees by helping you manage your money, rather than by doing your taxes. In short, there will be no tax season.

The transition from an income tax to the FairTax, for the average consumer, will hardly be noticed. The collection of the tax revenue lies with the retail and service businesses, and most of the infrastructure is already in place for collecting sales taxes. The prices of goods and services will remain about the same, and in some cases may even decline as embedded taxes are removed from the manufacturing, transportation and supply processes.

Every year we lose billions of dollars in productivity just in the time it takes us to prepare and file our tax returns. This is an immediate benefit of implementing the FairTax. Will it be easy to get it done? No. Is it worth it? Absolutely.

How will the FairTax be collected?

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.