Administration of the FairTax®

This White Paper discusses how the State governments would enter into a cooperative agreement with the U.S. Treasury Department governing the administration of the FairTax by each state.  The States would collect the tax for the Treasury and receive compensation for the effort.  A strong case exists for the state administration of a federal sales tax. State governments already have the administrative structure and databases necessary to implement a national sales tax. Utilization of this existing structure to implement the FairTax will substantially lower the “startup” costs and reduce the timeline associated with the implementation of a national retail sales tax compared to what there would be if implementation were done by the IRS which has zero experience in the administration of general sales taxes.

Administration of the FairTax®