Just read the Fairtax plan. Sounds like a great idea but I have two questions. First, does this mean corporations pay no federal taxes? And B, it talks about a monthly rebate, that sounds like it would be a huge undertaking. Don't get me wrong, I'm willing to try anything to replace this crap-hole mess we've got now...
Yes, the Fairtax totally repeals the personal, corporate, payroll and estate taxes.
The monthly rebate exists so that noone would pay tax on the necessities of life. By the way, everyone gets the rebate, not just the poor. It makes the tax progressive. The monthly rebate process would be nothing compared to filing a tax return annually. You would just send in a postcard annually which lists the persons in your household and their social security number. When you have another baby you just send in another form. The social security administration would send a check on the first of each month to the family, or direct deposit, just like they do now for millions of social security recipients. The mechanism are basically already in place.
For more information click here: http://www.fairtaxvolunteer.org/smart/faq-main.html#3 Look at #3. All of the faq's are very informative.