IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

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

  • 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.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

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

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

    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

    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.

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.