FAIRtax Calculator 3.0.24

The FAIRtax Calculator serves as a valuable resource for individuals interested in understanding the financial implications of the FAIRtax. While it is primarily tailored for FAIRtax advocates, its design allows users to quickly and effectively illustrate the tax impact on families of varying sizes and spending levels, thereby facilitating informed discussions ranging from everyday citizens to members of Congress.

The current iteration of the calculator is constructed based on "The FAIRtax Act of 2023" (H.R.25) and utilizes the Health and Human Services Poverty Guidelines for 2024. Updates will be made annually to accommodate new federal poverty guidelines, typically released in early to mid-January. Additionally, any changes to the FAIRtax Act wording in future congressional sessions will be reflected in the calculator to ensure accuracy and relevance.

It is important to clarify that the tax collection and rebate mechanisms under the FAIRtax are automated, meaning this calculator serves demonstration purposes only. It effectively illustrates the underlying processes involved, as individuals will be required to submit only a one-page annual statement detailing their family's size and composition.

To calculate potential tax liabilities, users need to provide only four key pieces of information: 1) estimated annual spending on new retail products and services, 2) the number of adults in the household, 3) the number of children, and 4) the family's region of residence (noting that Alaska and Hawaii have different cost-of-living adjustments impacting rebates). These inputs can be easily adjusted via scroll wheels, allowing for spending levels ranging from $0 to $9,999,000 in $1,000 increments. As users make selections, the calculated tax total and rate are promptly updated on-screen.

The outputs displayed at the bottom reflect the equivalent TAX burdens previously covered by forms such as the Form 1040, encompassing various taxes including federal income tax and payroll taxes (both employee and employer contributions). This comprehensive calculation aids users in understanding how these components integrate under the FAIRtax framework.

Additionally, the application includes a feature that presents the mathematical equations underlying its calculations in an easily navigable format. Such transparency underscores how straightforward it is to compute potential FAIRtax liabilities.

For advocates of FAIRtax, this tool provides an almost instantaneous response to a frequently posed question: "How much will I pay in FAIRtax?" The swift functionality enables users to propose diverse family dynamics scenarios and immediately reveal how these would compare under the FAIRtax system—both in terms of percentage rate and dollar amount.

While primarily aimed at supporters of FAIRtax, detractors are equally encouraged to engage with this calculator. Experimenting with different family financial scenarios can yield insights into contrasting tax burdens when compared with current income tax obligations. Ultimately, users can assess for themselves the implications of adopting such a tax structure.