One of the many positives of the FairTax is that it helps the environment. Since the FairTax exempt purchases on used products, consumers have a bigger incentive to purchase used products to satisfy their wants and needs. Not only are used products priced lower than new products, the tax savings can also be significant when shopping for cars, appliances, recreation vehicles, exercise equipment, and many other costly goods.
FairTax can also reduce the demand for paper. According to one of the FairTax white paper, “What the federal tax system is costing you – besides taxes!”, over 130 million individual tax returns were filed and approximately 50 million business tax returns (includes corporations, partnerships, and sole proprieters) were filed. Under the FairTax, no individual tax returns would be filed other than a form to apply for prebates. Think about how much paper that saves (tax forms, instruction booklets). IRS still sends millions of tax booklets to households every year.
Businesses would no longer have to file complex income tax returns, saving any more paper. Since only businesses that sell goods or service at the retail level would have to file a sales tax return, more paper is saved. More paper saved means more trees and more room at the landfill.
Fuel would also be subject to the FairTax on top of the existing fuel taxes. I like to travel and would continue to do so under the FairTax; however, I will cut down on unnecessary trips. If the FairTax reduces demand for fuel, fuel prices would drop and the air would be cleaner.
Overall, the FairTax could have a significant drop in demand for natural resources. Environmental groups should be clamoring for the FairTax.