Portal:North America

The FairTax is a proposed change to the federal tax laws of the United States that would replace all federal income taxes with a single national retail sales tax. The plan has been introduced into the United States Congress as the Fair Tax Act (H.R. 25/S. 1025). The tax would be levied once at the point of purchase on all new goods and services for personal consumption. The proposal also calls for a monthly payment to all family households of lawful U.S. residents as an advance rebate, or ‘prebate’, of tax on purchases up to the poverty level. The sales tax rate, as defined in the legislation, is 23 percent of the total payment including the tax ($23 of every $100 spent in total—calculated similar to income taxes). This would be equivalent to a 30 percent traditional U.S. sales tax ($23 on top of every $77 spent before taxes).

With the rebate taken into consideration, the FairTax would be progressive on consumption, but would also be regressive on income at higher income levels. Opponents argue this would accordingly decrease the tax burden on high income earners and increase it on the middle class. Supporters contend that the plan would decrease tax burdens by broadening the tax base, effectively taxing wealth, and increasing purchasing power.

• …that the proposed Atlantica trade bloc would economically tie New England in the U.S. to the Atlantic Provinces of Canada?

• … that Vermont coppers (pictured) were the currency used in Vermont before it became a U.S. state in 1791?

• …that the Soufrière Hills volcano is an active complex stratovolcano with many lava domes forming its summit on the Caribbean island of Montserrat?

• … that Bésame Mucho, a song written in 1940 by Consuelo Velazquez, is according to some sources the most interpreted and performed song of the 20th century?

• … that during the Dead Rabbits Riot of 1857, residents of Mulberry Street in New York City were forced to barricade themselves in their homes?