Picture this:

It is payday. You get your paycheck as usual, but realize that instead of the $700 you normally get, it is now $1000. You check with your boss, only to be reminded that the Federal Income Tax has just been repealed and the IRS has been abolished. Not only has the personal income tax been repealed, but also estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes. Cool.

Today is the day you were going to go car shopping with the wife and buy new clothes for your two kids. Before you leave, you check the mail only to find a check from the federal government. Hmmm. Then you remember that under the FairTax, every Social Security cardholder who is a U.S. resident gets a check at the beginning of each month equivalent to the FairTax paid on essential goods and services, also known as the poverty level expenditures. Nice.

When you get to your favorite car dealership, you realize that car prices have actually decreased 20-25% over the last few weeks. How can that be? Then you realize that now that each supplier no longer has to pay income tax, those taxes are not built into the price of the product. Without those hidden, embedded taxes, prices are naturally falling to be more competitive in the market place.

When you price the new vehicle, you cannot overlook the 30% sales tax that is added to the price. OK, but the price of the car has dropped by about that same amount. So, it’s really a wash. But then the salesman reminds you that if you buy a “used” car, it is exempt from the national sales tax. This applies to all used items. With the FairTax, an item is taxed only once when it is brand new.

More "good news"... there is no FairTax on College Tuition!... zero, zip, nihl, none!

Later that evening, as you ponder the events of the day, you realize several things. The U.S. economy will thrive because of the FairTax. Since all U.S. exporters immediately see an average 20-percent reduction in their production costs, they experience an immediate boost in their competitiveness overseas. American companies doing business internationally are able to sell their goods at lower prices but similar margins, and this brings jobs to America.

In addition, U.S. companies with investments or plants abroad will bring home overseas profits without the penalty of paying income taxes, thus resulting in more U.S. capital investment. And at last, imports and domestic production are on a level playing field. Exported goods are not subject to the FairTax, since they are not consumed in the U.S.; but imported goods sold in the U.S. are subject to the FairTax because these products are consumed domestically.

The so-called 'underground economy' will at last be paying its fair share for the benefits enjoyed in America. Under the present system, if money is made illegally, it is never taxed. But drug dealers and other criminals do buy new cars and homes. Everybody pays.

The last pleasant thought that crosses your mind as you nod off to sleep is that April 15 is just around the corner. Guess what? It’s just another day.

The scenario above can become reality. Call and write your congressman and insist that he or she become a sponsor of HR 25. Last congressional session we had some 53 sponsors and cosponsors and 560,000 grass roots supporters and over 10 years research. Now, there are over 750,000 supporters and growing fast. Everyone will win with the FairTax.