Advanced Search
MyIDEAS: Login

A Distributional Analysis of the FairTax Plan: Annual and Lifetime Income Considerations


Author Info

  • Yingxu Kuang

    (School of Business Administration, University of Houston—Victoria, Victoria, TX 77901, USA

  • Ted Englebrecht

    (†Smolinski Endowed Chair, Professor of Accounting, College of Business, Louisiana Tech University, Ruston, LA 71272, USA)

  • Otis W. Gilley

    (Century Telephone Enterprises, Inc., and Clarke M. Williams Memorial Endowed Professor, Professor of Economics, College of Business, Louisiana Tech University, Ruston, LA 71272, USA)

Registered author(s):


    Dissatisfaction with the current federal tax system is fostering serious interest in the FairTax Plan, which would replace most of the federal taxes with a national retail sales tax. The FairTax is promoted as being progressive, but there is considerable skepticism of this claim. We examine the distributional effects of the FairTax, as well as the current system it intends to replace, under both annual income and lifetime income approaches. Global measures of progressivity suggest that the current federal tax system is progressive while the FairTax is regressive. Our results are also robust to different assumptions used for estimation.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 78 (2011)
    Issue (Month): 2 (October)
    Pages: 358-381

    as in new window
    Handle: RePEc:sej:ancoec:v:78:2:y:2011:p:358-381

    Contact details of provider:
    Web page:
    More information through EDIRC

    Related research


    Find related papers by JEL classification:


    No references listed on IDEAS
    You can help add them by filling out this form.



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:78:2:y:2011:p:358-381. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.