Friday, November 20, 2009

Did You Know?

According to extensive studies by Dr. David Tuerck of the Beacon Hill Institute:

After enactment of the FairTax:

GDP is estimated to be 7.9 percent higher in the first year, 10.9% higher in year 10 and 10.3% higher in year 25 after enactment of the FairTax than what would otherwise be the case if the current system remained in place.

Domestic investment is 74.5% higher, 75.9% higher, and 65.2% higher in years 1, 10, and 25, respectively.

The capital stock is 9.3% higher in year 5, 14.1% higher in year 10, and 17.3% higher in year 25.

Real wages are 10.3%, 9.5%, and 9.2% higher in years 1, 10, and 25, respectively than would otherwise be the case.

Consumption drops slightly in the first two years (0.6% and 0.8%), and then be 1.8% higher in year 5, 4.3% higher in year 10, and 6.0% higher in year 25.

BHI is the research arm of the Department of Economics at Suffolk University in Boston. It specializes in the development of state-of-the-art economic and statistical models for the analysis of federal, state, and local economic policies and how they affect citizens and businesses. Dr. David G. Tuerck, director of the research team, serves as the Director of Beacon Hill Institute and as professor and chairman of the Suffolk University Department of Economics.

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