This prevents so-called tax "cascading" or "pyramiding," in which an item is taxed enhanced than once as it makes its way from production to final retail sale. There are numerous types of sales taxes: Seller or Vendor Taxes, Consumer Excise Taxes, Retail Transaction Taxes, or Charge Added Taxes.

Since the 1990s, the abstraction of replacing the income capitation with a national sales boodle has been floated in the United Sales Tax States; many of the actual proposals would include giving each household an annual rebate, paid in monthly installments, equivalent to the percentage of the custom (which varies from 15% to 23% in most cases) multiplied by the poverty level based on the emblem of persons in the household, in an effort to devise a progressive effect on consumption. While multiplied political observers consider the chances remote for such a change, the FairTax Step has attracted besides cosponsors than any other fundamental tax reform bill introduced in the House of Representatives.