By Warner M. Montgomery

By abolishing the IRS and the Tax Code, the Fair Tax will benefit middle class Americans. All personal and corporate income taxes will end. Not one cent will be taken out of anyone's paycheck. There will be no more Social Security taxes, no more Medicare taxes, no taxes on investments, no taxes on savings. You will be taxed by the federal government only on what you spend at the retail level. The federal government will be funded through a national sales tax on goods and services sold at the retail level. To maintain government services at the current level, the sales tax will have to be 23%. If government services are cut, it will be less.

Is a 23% sales tax too much to pay? Under the current IRS system, yes. Under the Fair Tax, no it is not.

Under the Fair Tax you will gain Social Security/Medicare taxes now being taken out of your paycheck, an automatic 12-14% raise. You will no longer have to pay the 22% hidden (imbedded) taxes you now pay because of the taxes your employer passes on to you, possibly another big raise.

Companies will no longer pay federal taxes at every step of their production, manufacture, marketing, distribution, and sale. When these taxes are gone, the free market forces will bring lower prices on everything you buy, including food, clothing, shelter, and transportation. You win again.

For more information: www.fairtax.org or call 1-800-FAIRTAX.

(Next week: What is the rebate?)