Will FairTax tax FOOD?
I’ve been asked this question enough to know that nobody likes the direct answer they get. That being said, you probably already know the answer. But, what most people don’t understand is that the FairTax compensates them for their sub-poverty level purchases. Because of the FairTax Prebate, no legal US Citizen will pay taxes on any foods or other necessities below the poverty level.
The answer nobody likes to hear: Yes, the FairTax taxes food. The FairTax taxes ALL new goods and services. If it didn’t tax everything equally, it would have loopholes or it would leave potential loopholes; something we definitely do not want in any tax system (hence the reason for the prebate).
Will FairTax tax GAS?
Gas Taxes falls into a category not included in Income or Payroll Taxes. Because Gas Taxes are Excise Taxes (same with Alcohol and Tobacco), the FairTax does not eliminate those taxes.
BUT…you should understand that the FairTax does remove the embedded taxes created by the Income and Payroll Taxes being taken from corporations. Once those taxes are no longer taken from corporations, the corporations no longer need to include the taxes in the products you purchase from them.
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