The Fair Tax, as its name suggests, aims to make the tax system fairer through various strategies, including shifting tax charges from income to expenditures. The bill that was proposed by Congress looks to broaden the tax base, reduce government spending, eliminate the IRS, reduce tax evasion, and give more power to taxpayers in controlling the amount they pay in taxes.

The Fair Tax campaign is pushing the bill to the people because it is expected to make it easier for American taxpayers to pay and control their tax rates. As the taxes will be charged on products and services sold, taxpayers will not need to prepare and file income taxes. Instead, businesses will pay taxes to the government on commodities sold.

Taxpayers will get the freedom to control the taxes they pay by controlling their spending, thereby increasing savings and investment. Taxpayers will be able to take home their entire paycheck, as there will be no taxes charged on wages.

Social Security and Medicare will be funded by the taxes charged on consumption. Those in favor of the Fair Tax believe it will give the programs a more solid foundation, as the tax base will be larger.

Even though the Fair Tax has its advantages, its limitations can become problematic in the future. The Fair Tax can lead to pervasive tax evasion where businesses can use tax strategies to limit their taxes more so than they do now. Moreover, the implementation of a tax system based on consumption might become unmanageable. Some believe that instead of shifting from income tax to a consumption tax, using a Value Added Tax (VAT) can be more beneficial.

The Fair Tax may or may not be the answer to a more effective tax system, but it has opened up debate on how to reform the tax code to make it more efficient.