...to the benefit of the American people.
The FairTax is essentially a luxury tax on new goods and services sold at retail.
The poor pay $0 FairTax.
The FairTax completely abolishes ALL the income taxes - personal, payroll, corporate, capital gains, self-employment, gift, alternative minimum, estate, all of them.
Prices of American-made good fall by 18% - 22% due to being free of the income taxes during their manufacture.
Prices of foreign goods do not fall at all.
The FairTax exclusive rate of 30% is applied to both the domestic manufactured products and the foreign manufactured products.
The domestic product ends up at about the same price as it was before. The foreign product ends up about 30% higher.
The world's business executives injure themselves in a stampede to build factories in the tax-free USA.
Much higher paying factory jobs raise the wages of Americans dramatically, while the burger restaurants and big box retailers raise wages just to pry some help off the factory floor.
The much richer American people happily become bauble-buyers of more expensive things, accelerating the collection of the FairTax.
The FairTax raises revenue to be able to nuke the deficit, then begins to pay down the debt.
And that's the ONLY way I can see that the debt ever has a chance to be paid, since there's nothing that we can similarly cut to balance the budget without killing a lot of folks. Medicare and Social Security cuts would kill a lot of folks, and they're the only things that cost enough to nuke the deficit.