Imagine keeping ALL of your salary – every single penny. Sounds like a nice dream, right?
It doesn't have to be a dream. The truth is, the Fair Tax would eliminate personal income taxes, allowing you and every other hardworking American to take home 100 percent of what you earn.
This feature of the Fair Tax is what will help drive economic opportunity for everyone in the U.S. With the elimination of individual income taxes (by the way, the Fair Tax also would result in the elimination of Medicare/Medicaid, FICO and Social Security taxes), Americans would have additional financial resources because they’d be able to fully leverage their annual salary. This extra money could allow families to buy homes, invest in higher education or simply serve as additional disposable income to spend, strengthening our economy.
But the benefits don’t stop there - another great feature of the elimination of personal income taxes is the opportunity for increased saving. Simply put, because savings would no longer be taxed, they would grow more quickly, allowing for greater pools of capital to form, which in turn would enable more investment in our economy.
And because Americans would be able to save tax-free, they would not be hit with taxes if the need arose to take money from a 401(k) or similar retirement account earlier than normal…and that means that more funds would be available throughout retirement years.
The Fair Tax opens the door to allow Americans to have greater access to their own hard-earned dollars, helping to stimulate and grow our economy.