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An Economic Assessment of the Fair Tax

October 29, 2020

Three famous economists - Arthur B. Laffer, Ph.D., Stephen Moore, and Erwin J. Antoni, Ph.D - discuss why the Illinois "Fair Tax" would be destructive for the economy.

Three famous economists - Arthur B. Laffer, Ph.D., Stephen Moore, and Erwin J. Antoni, Ph.D - present their new paper for The Heartland Institute titled "Will the Last Taxpayer in Illinois Please Turn Out the Lights: An Economic Assessment of the Illinois ‘Fair Tax’." The report:

www.heartland.org/_template-assets…airTaxReport.pdf

The economists’ research says passage of the so-called "Fair Tax" ballot initiative, which voters will decide on November 3, would:

 hit small businesses with annual profits as low as $250,000;

 slow job growth by an estimated 566,000 over the next decade, effectively eliminating about one in 10 current jobs;

 result in 1.4 million people leaving Illinois for better economic opportunities, setting outmigration from Illinois at about nine times faster than the current alarming rate;

 reduce the state's GDP by $20.5 billion over the next decade;

 reduce home value appreciation by about 10.4 percent over the next decade;

 make Illinois one of the five highest tax jurisdictions in the world, with only New Jersey and some Third World nations having a higher tax on corporations.