Could The Fair Tax Replace IRS Federal Income Taxes?

The IRS federal income tax is something all of us must pay. The fair tax reform movement has taken hold and many more people are beginning to join in the discussion. Under the fair tax system, income tax would be the same, regardless of the actual amount earned. While the system is considered unfair for those who have low incomes and generally do not pay any income tax, there are many people who advocate the fair tax because of the fact that it simplifies everything, saving millions of man hours due to the complexity of the current tax code.

The Fair Tax Initiative

The idea behind fair tax initiative is that with everyone paying the same taxes, there would be no need for the IRS organization and we could save a tremendous amount of money as a nation. Since money is now spent on salaries, audits and other IRS related expenses, the savings would add up significantly.

The fair tax would work like a federal sales tax, attached to each purchase a person makes. There would not have to be an influx of mail in April as everyone rushes to get their returns to the IRS on time, and there would not have to be as much stress over owning taxes or having to file an IRS federal income tax extension if you were unable to file on time.