It's a system that funds the federal government via consumption tax. Income taxes vanish. It's a brilliant, TRULY fair system that would work, but this nation will never have the backbone to adopt it for three main reasons: * It would end the endless orgy of unaccountable, drunken-sailor spending in Washington - the government would actually have to watch the budget! * It would require every single American to contribute to the support of this nation. That flies in the face of everything the Democrats believe in. * Tens of thousands of accountants and tax attorneys have a standing interest in keeping the current voluminous, confusing system of taxation. So we will likely never see The Fair Tax adopted in this country. It's too FAIR and HONEST a system of taxation.