Gov. Huckabee's response to a Fair Tax question.

Here is my question about the Fair Tax. I am 60 years old and have a long work history. I have saved for my retirement and most of my savings has not been tax deferred. Would the Fair Tax cause me to be taxed again on this money as I deplete my savings in retirement?

First James, thanks for the question. All Americans will benefit from the Fair Tax, whether working or retired; single, married, or widowed; rich, poor, or middle class.

Under the Fair Tax, any growth of stocks and bonds in your retirement accounts or interest accumulation in your savings accounts will no longer be subject to federal taxes.You will collect all of your pension because the Fair Tax eliminates current federal taxes that are withheld when a pension is drawn.

Under our current tax system, you will be taxed again on your money as you deplete your savings because the truth is that up to 25% of retail prices are corporate and payroll taxes, plus compliance costs. Businesses pass on their taxes to consumers. The Fair Tax eliminates all these taxes and lets competition drive retail prices down.

Also, the Fair Tax gives everyone a prebate up to the poverty level, so that you can buy necessities untaxed. Most retirees don't spend more than this amount every month. The combination of lower prices and the prebate means most retirees will pay less in federal taxes when they spend retirement savings than they do under our current system.

The Fair Tax will secure Medicare and Social Security funding and protect your benefits.

By switching from a narrow, regressive, and inconsistent tax to a broad, progressive, and dependable tax on consumption, the Fair Tax will ensure that we have the funding for the benefits current and future retirees have earned. Finally, the Fair Tax eliminates capital gains, dividends, and death taxes, so that you won’t pay taxes on interest from your savings and investments, or when you sell your home, stocks or other assets. Without the death tax, your heirs will receive every penny you leave them.

For more on the Fair Tax I encourage you to watch the video I have added below.