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How does the FairTax protect low-income and lower-middle-income families and individuals?

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How does the FairTax protect low-income and lower-middle-income families and individuals?

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Under the FairTax Plan, poor people pay no net FairTax at all up to the poverty level! Every household receives a rebate that is equal to the FairTax paid on essential goods and services, and wage earners are no longer subject to the most regressive and burdensome tax of all, the payroll tax. Those spending at twice the poverty level pay a tax of only 11.5 percent — a rate much lower than the income and payroll tax burden they bear today. Under the federal income tax, slow economic growth and recessions have a disproportionately adverse impact on lower-income families. Breadwinners in these families are more likely to lose their jobs, are less likely to have the resources to weather bad economic times, and are more in need of the initial employment opportunities that a dynamic, growing economy provides. Retaining the present tax system makes economic progress needlessly slow, thus harming low-income people the most. In contrast, the FairTax dramatically improves economic growth and wa

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Under the FairTax plan, those at or below the poverty line pay no net FairTax. Every household receive a rebate that is equal to the FairTax paid on essential goods and services, and wage earners are no longer subject to the most regressive and burdensome tax of all – the payroll tax. Those spending at twice the poverty level pay a tax of only 11.5%, a rate much lower than the income and payroll tax burden they bear today.

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