Donald Trump said this during his acceptance speech in Cleveland:
Next comes the reform of our tax laws, regulations and energy rules. While Hillary Clinton plans a massive, and I mean massive, tax increase, I have proposed the largest tax reduction of any candidate who has run for president this year, Democrat or Republican. Middle-income Americans will experience profound relief, and taxes will be greatly simplified for everyone. I mean everyone.
America is one of the highest-taxed nations in the world. Reducing taxes will cause new companies and new jobs to come roaring back into our country. Believe me. It will happen and it will happen fast. [Emphasis added]
Former Congressman, current Indiana Governor and Vice Presidential nominee, Mike Pence responded to a question about the FairTax resolution H.R. 25. The question was asked during a Town Hall forum in Anderson, Indiana, on April 16, 2009. Here Pence’s response:
Dave Leake a supporter of H.R. 25, the FairTax notes:
[W]hile speaking off the cuff, Pence got a couple things not quite right, and also failed to mention some important stuff. The government rebate (“prebate” as FAIRtaxers call it) would be paid every month, not quarterly. And, for every legal family of three, it would amount this year to $6,417, paid in monthly increments of $535. The size of the prebate is solely determined by family size, NOT on what you spend or earn.
That prebate does not include the pay raise for every family. That pay raise will be equal to every dime taken right now from your pay for income taxes, payroll tax, and FICA.
The FairTax Act of 2015 reads:
This bill is a tax reform proposal that imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income and corporate income tax, employment and self-employment taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2017, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property, for property or services purchased for business, export, or investment purposes, and for state government functions.
Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines.
The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury.
Tax revenues are to be allocated among: (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund.
No funding is allowed for the operations of the Internal Revenue Service after FY2019.
Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this Act.