What is the FairTax? here are some details........whether or not you agree, hate it, love it...it's worth understanding! Here is a primer:

It is a 23% consumption tax that replaces the need for filing with the IRS under a 6700 page tax code that even the IRS employees misinterpret or miscalculate 25% of the time. (That is to say they are off plus or minus in calculating the returns every year.)
Filing with the IRS costs Americans and American companies literally billions of dollars every year both in actual costs to accountants etc, and through time lost from productivity. The IRS can freeze your bank account, take your home, and even imprison you if there are miscalculations in your filing. The assumption is that you intend to defraud. They can do all of these things without ever having proved their case against you. The IRS costs American taxpayers $10 billion dollars a year to maintain! Don't we have better uses for that money?
This consumption tax takes into account the embedded payroll and social security taxes that consumers already pay when they purchase items at the store. Corporations do not 'pay' these taxes; they pass them on to the consumer. Since the Fair Tax removes payroll taxes and social security taxes and export taxes from the corporations, and since we live in a capitalist economy where companies are constantly competing for market share, inevitably some or most of these companies will give these savings back to the consumer in the form of reduced prices. Therefore, the 23% consumption tax will not necessarily translate into increased prices. These tax breaks for corporations will also give them more money to reinvest in current business operations but also to create new companies. They will be better able to compete overseas on pricing, and they will likely find it more profitable to bring some of those jobs that have gone offshore back to the US. It will also encourage foreign investment here in the US.
No more payroll tax or social security, medicare, or FICA taxes will come out of the consumers paychecks. They will have the full benefit of their pay every month. Ron Paul said in one of the debates that if you subsidize something, you get more of it. And that's true. It is also true that if you penalize something, you will get less of it. The payroll (income) tax penalizes productivity…do we want less productivity?
No more capital gains tax. People will no longer be penalized for saving or for growing their capital by investing their money. Money currently sitting in offshore accounts (roughly $12 trillion) to protect it from the IRS can be brought home and reinvested here in the US, bringing security and strength to the dollar and money for investment.
No more inheritance tax. The money you work hard to build and leave behind for your family will not be 'retaxed' as 'new income' by the federal government.
The Fair Tax maintains the current tax free poverty rates of the federal government. Prebates, based on number in household rather than income, alleviate the tax burden on the basic necessities of life for every person with a Social Security Number or a Tax I D Number. There are several credit card companies who have suggested they would be willing to pay for the opportunity to run such a plan. A family of four qualifies for a prebate of $506.00 per/month or $26,400.00 annually; the current federal poverty level. ONLY persons with valid SSN's and TIDN's would qualify for these cards and prebates.
Which brings up the next great advantage of the Fair Tax which is that illegals, prostitutes, drug dealers, even tourists, all of whom only burden our infrastructure from police to prisons to schools to hospitals to firefighters to roads etc will now be forced to participate in funding them as well. There is no possible tax evasion because every first time purchase is taxed. And, those who do not qualify for the prebate will feel the pinch, perhaps removing the temptation to remain in the US illegally.
Under the Fair Tax, the wealthy who buy more and more expensive things still pay more, and the poor are protected. The Fair Tax is the result of ten years of study by top economists and tax accounants. They did not set about to 'prove' the Fair Tax legislation, but rather they set about to find the most reasonable manner in which to fund the government with the money it needs to operate. The result of the ten year study is the Fair Tax.

submitted by Norwegian Wood..thanks for the information!