FairTax Overview
The findings for 2007 through 2031 are summarized in Table 1 below. The table shows the percentage difference
in each indicator resulting from implementation of the FairTax for selected years 2007 to 2031. For example,
real GDP would be 7.9 percent higher in 2007 under the FairTax than under the “benchmark” current law and
10.3 percent higher by 2031.
Table 1
Summary of Effects of the FairTax Relative to Current Law:
2007 – 2031 (% change)
Year
Period Indicator
Real GDP
Domestic investment
Capital stock
Employment
Real wages
Consumption
2007
1
2008
2
2009
3
2010
4
2011
5
2016
10
2021
15
2026
20
2031
25
7.9
74.5
0.0
11.9
10.3
-0.6
9.3
88.4
2.8
12.0
10.6
-0.8
9.9
88.0
5.3
11.2
10.4
0.2
10.3
87.1
7.5
10.5
10.3
1.1
10.7
86.3
9.3
9.9
10.2
1.8
10.9
75.9
14.1
7.6
9.5
4.3
10.7
69.0
16.0
6.1
9.1
5.5
10.5
65.7
16.9
5.3
9.0
5.9
10.3
65.2
17.3
4.7
9.2
6.0
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