Question 7. How do the welfare gains from EFFICIENT TAXATION OF INCOME compare with gains from consumption taxes? Answer: EFFICIENT TAXATION OF INCOME would have a larger impact than a Proportional National Retail Sales Tax and twice the impact of the popular Flat Tax proposal. Here are the numbers: EFFICIENT TAXATION OF INCOME $4.90 trillion Hall-Rabushka Flat Tax $2.06 trillion Progressive National Retail Sales Tax $3.32 trillion Proportional National Retail Sales Tax $4.69 trillion ****
I do not see why he would prefer his proposals to the much greater simplicity of the Fair Tax Act.