Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Well, what it boils down to is to have a national sales tax that would replace the federal income tax as well as the payroll tax. Of course, the payroll tax funds Social Security and Medicare. So you would get rid of those two taxes and you would have a national sales tax. And that national sales tax would be used to fund the entire federal government.

"Supporters say, number one, that the rate would not be very high. It would be around 23 percent, but again you have to remember that it is replacing those two taxes that I mentioned. Supporters also say that the tax could be progressive, meaning that higher income people would actually pay a relatively higher percentage, because what you would do is you would have rebates that would be sent back to people, rebates of some of their tax based on their income level. Lower income people would get more of a rebate than higher income people. And supporters also say that the fair tax would promote savings and investments in the country. And it would just be a simple tax, because it would end all preferences that you currently have, for example, in the income tax.

"Now there are skeptics. Skeptics, I think number one, question whether the rate could be only 23 percent. There are some estimates that it would have to be in the 30 percent range. And also skeptics question whether you really want to finance the federal government solely on spending - consumer spending - rather than a broader base like income. But I think we will hear more and more about the fair tax as the presidential campaign moves along."