How does the FairTax affect senior citizens, the retired, and people on fixed incomes?
As a group, senior citizens do very well under the FairTax plan. Low-income seniors are actually much better off under the FairTax than the current system. Some people mistakenly believe that people who live exclusively on Social Security do not pay taxes; however, they may not know the hidden corporate income taxes and employer payroll taxes being applied whenever a purchase is made. Under the FairTax, everyone pays $0.23 out of every dollar they choose to spend on new goods and services. On top of the money they will be saving when hidden taxes are eliminated, fixed income citizens will also receive the monthly prebate like everyone else for taxes paid on the cost of necessities.
