FairTax.org has conducted extensive policy research and commissioned a variety
of issue papers on the economic impact of the FairTax on various sectors of
industry and individual taxpayers. This work has been conducted in a
nonpartisan manner, and the results are made freely available here. We are also
providing transcripts of testimony about the FairTax delivered to the House
Ways and Means Committee and the House Committee on Small Business.
Click on the topic headings below to view the studies and papers. (All
documents listed below are in PDF format. You will need to have the Adobe
Acrobat Reader installed to view these documents. To download the free PDF
reader, click here.)
|The impact of the FairTax on interest rates
Lays out the economic factors affecting interest rates and how the FairTax influences them
|The impact of the FairTax on investment
The income tax retards economic performance by creating a significant bias against saving and investment through double, triple, and even quadruple taxation. After repeal of the income tax, the U.S. will be perhaps the most attractive place on earth to invest.
|The impact of the FairTax on tax-exempt bondholders
With the FairTax replacing the current tax system, the value of municipal and other tax-exempt bonds remains approximately what it is today. Corporate bond rates fall to the tax-exempt interest rate, since corporate interest is neither deductible nor taxable.
|The impact of the FairTax on the stock and bond markets
The replacement of the present tax system with the FairTax will cause the stock market to appreciate. The FairTax will increase the expected future return on assets.
|The FairTax treatment of insurance
The main purpose of insurance is to mitigate risk, either on property or people. While life and annuity products have some tax benefits under the current tax system, the FairTax either continues these benefits or improves them.