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.