Fair Tax Plan Overview

From the proposed Constitution, Article I, Section 9(a): Tax Code. TO pay the debts and constitutional obligations under Article IV, and provide for the common defense and general welfare of the Republic, Congress shall be limited to a consumption-based tax rate in its power to establish laws that lay and collect taxes, not to exceed 20%, and based on the annual Gross Domestic Product of the prior year applied to the following economic algorithm: (GS*100) ÷ (GDP – GS); where GDP = Gross Domestic Product and GS = Government Spending.

The phrase above: “Congress shall be limited to a consumption-based tax rate in its power to establish laws that lay and collect taxes,” strictly limits ALL taxation, thus eliminating payroll, social security, Medicare, state, local, sales, estate, capital gains, corporate, and ALL TAXES. Adding this provision to the new Constitution will prevent Congress, by law, from changing the tax laws or imposing any kind of new tax other than a consumption-based, flat-rate tax as determined by the stated mathematical equation above (explained in detail ahead).