- “The current U.S. income tax system discourages personal savings and investments by taxing capital gains, dividends and earned interest. Business owners and wage earners struggle under the burden of a very regressive payroll tax.”
- The FairTax replaces the individual federal income tax, the capital gains tax, all payroll taxes, corporate income taxes, the self-employment tax and the estate and gift taxes.
- The income tax is “unbelievably complex, time consuming, and costly to administer”. The FairTax, on the other hand, would reduce the cost of compliance for Americans from $225 billion to less than $10 billion.
- Business-to-business purchases for the production of goods and services would not be taxed.
“NSBA supports fundamental reform and looks forward to working with supporters of the Fair Tax to educate taxpayers about the proposal,” according to their statement.