FairTax Explained for Households: What a "30% National Sales Tax" Could Mean
Discussion around a proposed “30% national sales tax” has gained traction online, prompting questions and concern from households trying to understand what the claim actually means. In response, Trustway Accounting recently published an in-depth educational guide breaking down the FairTax proposal, the source of the rate confusion, and how different households could be affected in practice. The FairTax, formally introduced as H.R. 25, proposes eliminating federal income and payroll taxes and replacing them with a national tax on consumption. While the proposal itself is not new, renewed attention has surfaced amid viral posts suggesting prices would instantly rise by 30 percent. According to Trustway Accounting, this framing oversimplifies a complex policy proposal and overlooks several key mechanics that determine real-world impact. One of the most common points of confusion addressed in the guide is the difference between a “23%” and “30%” rate. The FairTax is written as a 23 percent...