One of the most misunderstood aspects of the FairTax is how the Family Consumption Allowance (the “Prebate”) works. It seems that almost every time I speak, whether in person, or on the radio, someone asks about either the Prebate or what would be their FairTax rate. Since those two issues are effectively joined at the hip, we made this video, to show just how simple it is for you to calculate both your Family Consumption Allowance and your REAL FairTax amount, along with the tax rate that this amount would represent.
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