The Fair Tax is a bill (HR 2525) before the UnitedStatesCongress to switch from an IncomeTax to a national SalesTax. The official site is http://www.fairtax.org.

The FairTax eliminates IncomeTax, CorporateIncomeTax and PayrollTax and replaces them with a single 23% national ConsumptionTax. It also repeals the 16th Amendment legalizing income taxes in the first place. It is important to note that the FairTax will not affect American Federal government spending in any way. The FairTax is completely revenue neutral. i.e. no Federal expenditure need be cut as a result of this bill (including Social Security, Medicare, welfare, defense, etc). 

Further discussion and links have been refactored at TheReformSociety.  Click the logo below to read or participate there.

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Please note that this short summary has been left here per Ward's wishes as expressed on TheReformSociety.