What This Tax Is

• A 0.5% federal sales tax applied at the point of purchase

• Collected alongside existing state and local sales taxes

• Uniform nationwide

• Clearly itemized and transparent on receipts

At just fifty cents per one hundred dollars spent, the rate is intentionally modest to minimize economic distortion.

What It Offers

• Real-time payments for individuals, small businesses, and agencies

• Biometric ID and digital wallets for secure transactions

• Built-in fraud protection and dispute resolution

• Open API access for businesses, platforms, and banks

• Privacy-first design with transparent oversight

What Is Not Taxed

To protect essential needs and prevent regressivity, the following categories are fully exempt from the federal sales tax:

• Basic groceries

• Unprepared food

• Prescription medications

• Medical devices

This ensures that survival, nutrition, and healthcare are never federally taxed.

What Is Taxed

The tax applies to non-essential consumer purchases, including:

• Clothing and footwear

• Electronics and appliances

• Furniture and household goods

• Vehicles

• Entertainment and discretionary services

• Luxury items

The system focuses on discretionary consumption rather than necessity.

Estimated and Potential Revenue

Even at a low rate, a national sales tax generates substantial revenue due to the size of the U.S. consumer economy.

Conservative estimates indicate:

• Estimated annual revenue:

  $90 to $130 billion per year

  (after exemptions for food and healthcare)

• Potential long-term revenue growth:

  Revenue scales automatically with population growth, productivity, and economic expansion, without raising tax rates.

For context, this level of revenue is sufficient to:

• Cover a significant portion of annual federal interest payments

• Create sustained downward pressure on the national debt

• Offset meaningful reductions in income tax rates over time

Importantly, this revenue is collected without taxing wages, salaries, or productivity.

National Debt Reduction Strategy

All revenue generated by the 0.5% national sales tax is initially dedicated to paying down the national debt.

This approach:

• Reduces long-term interest obligations

• Improves fiscal stability

• Strengthens the country’s economic foundation

Debt reduction is treated as a structural priority, not a temporary measure.

A Transition Away From Income Tax

The Freedom 2028 plan does not eliminate income tax abruptly.

Instead, the 0.5% sales tax serves as:

• A stable baseline revenue source

• A replacement mechanism that grows organically

• A measurable tool for responsibly lowering income tax rates over time

As national debt decreases and revenue stabilizes, income tax reliance can be reduced in parallel.

Why a Sales Tax Works Better Long-Term

• Does not penalize work or productivity

• Harder to evade than income-based taxes

• Captures revenue from all participants in the economy, including visitors

• Aligns government funding with real economic activity

This structure is better suited to a modern, automated, and service-driven economy.

Transparency and Public Accountability

The federal portion of the tax is:

• Clearly listed on every receipt

• Easy to understand

• Impossible to hide

Any future changes would require public justification and accountability.

Summary

The 0.5% National Sales Tax is a disciplined, minimal, and purpose-driven policy that:

• Generates $90–$130 billion annually

• Protects essential needs

• Prioritizes national debt reduction

• Creates a viable path away from income tax

• Preserves state authority

• Scales naturally with the economy

This is not about expanding government.

It is about funding it responsibly and sustainably.