The FairTax is a proposed change to the federal government tax laws of the United States intended to replace all federal taxes on personal and corporate income with a single broad national consumption tax on retail sales. The taxes that would be repealed include personal income taxes (including the alternative minimum tax), corporate income taxes, capital gains taxes, payroll taxes (including Social Security and Medicare taxes), gift taxes, and estate taxes. Personal services such as health care, legal services, financial services, haircuts, and auto repairs would be subject to the FairTax, as would renting apartments and other real property. Exports and intermediate business transactions would not be taxed, nor would savings, investments, or education tuition expenses as they would be considered an investment (rather than final consumption). - Source: Wikipedia
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