Research rebuts FairTax misinformation - Reader comments at The New York Sun

Reader comment on:
FairTax's Plausible Solution
in response to reader comment: Reply to "FairTax is a fraud"

Submitted by Ian Repley, Ann Arbor, Jan 10, 2008 20:41

To add research basis to Mr. Patterson's perceptive rebuttal, I offer the following:

Over time, the FairTax benefits all income groups. Of 42 household types (classified by income, marital status, age), all have lower average remaining lifetime tax rates under the FairTax than they would experience under the current tax system. [KR]

The FairTax provides the equivalent of a supercharged mortgage interest deduction, reducing the true cost of buying a home by 19 percent. [WM]

Real wages are 10.3 percent, 9.5 percent, and 9.2 percent higher in years 1, 10, and 25, respectively than would otherwise be the case ( ). [THBNP]

References:

[KR] Kotlikoff, Laurence J. and David Rapson, "Comparing Average and Marginal Tax Rates under the FairTax and the Current System of Federal Taxation," NBER Working Paper No. 12533, revised October 2006.

[THBNP] Tuerck, David G., Jonathan Haughton, Keshab Bhattarai, Phuong Viet Ngo, and Alfonso Sanchez-Penalver, "The Economic Effects of the FairTax: Results from the Beacon Hill Institute CGE Model," The Beacon Hill Institute at Suffolk University, February 2007.

[WM] Walby, Karen, and Dan Mastromarco, "Promoting home ownership: How the FairTax's benefits for homeowners exceed the mortgage interest deduction," Americans For Fair Taxation White Paper, August 2006.

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Other reader comments on this article

Comment

Date

Dear Ms Diana Furchtgott-Roth Thank you for your positive "Opinion" of January 9,2008 on the FairTax possibilities and the impact it... [MORE]

Joseph LeBlanc

Jan 12, 2008 01:46

Over 60 % of the oil consumed in this country is imported at a global price. Oil companies that sell... [MORE]

Bruce Barnes

Jan 13, 2008 01:36

I love the idea of the FairTax so much I've been staying up and posting in forums discussing it. What... [MORE]

dculling

Jan 11, 2008 06:47

"FairTax" definitions: Used property – defined as property on which the federal sales tax has been collected already, and property that... [MORE]

Bruce Barnes

Jan 12, 2008 01:02

Will the IRS really be gone? The IRS is uniquely qualified to administer the Fair Tax with people, computers, and... [MORE]

Bruce Barnes

Jan 10, 2008 23:46

The Consumption Tax will replace personal taxes of 60 % of the budget and also another 40 % to raise... [MORE]

Bruce Barnes

Jan 10, 2008 23:43

A consumption tax could garner more support if services/labor were taxed at a lower rate than new products. More US... [MORE]

Kristin

Jan 10, 2008 23:19

Ms. DIANA FURCHTGOTT-ROTH, I just read your article. I am impressed by the strong argument you made for investigating the fair... [MORE]

Ed Harrison

Jan 10, 2008 09:42

Take a simple example we can all understand like a gas station that sells gasoline to a customer and that... [MORE]

Bruce Barnes

Jan 12, 2008 01:45

Thanks for your accurate and thoughtful discussion of the FairTax. I support this proposal and believe the American People will... [MORE]

Rodger Gamblin

Jan 10, 2008 05:00

If the government no longer has the payroll of the multi-thousands of IRS employees and each of these people becomes... [MORE]

mjwhite

Jan 9, 2008 17:35

All the discussion to now has been on the internal effect of the FairTax but the international issues also deserve... [MORE]

Dewey715

Jan 9, 2008 14:00

The fairtax pushes the tax burden to the middle class. It eliminates middle class tax deductions like the mortgage interest... [MORE]

FairTaxFraud Institute

Jan 9, 2008 06:56

The FairTaxFraud Institute is putting out derogatory information about the FairTax to protect their vested interests in the current tax... [MORE]

Tom Kropewnicki

Jan 10, 2008 11:41

Consider: "The fairtax pushes the tax burden to the middle class. " Considering the prebate provisions of the Fair Tax... [MORE]

David Patterson

Jan 10, 2008 14:50

To add research basis to Mr. Patterson's perceptive rebuttal, I offer the following: Over time, the FairTax benefits all income groups....

Ian Repley, Ann Arbor

Jan 10, 2008 20:41

The FairTax Act of 2007 (HR 25 / S 1025) represents a prospective power shift of massive proportions in America.... [MORE]

Ian Repley, Ann Arbor

Jan 9, 2008 04:52

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Reader comment on:FairTax's Plausible Solutionin response to reader comment: Reply to "FairTax is a fraud"

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Reader comment on:
FairTax's Plausible Solution
in response to reader comment: Reply to "FairTax is a fraud"