 In contrast to the above studies , William G. Gale of the Brookings Institution published a study in Tax Notes that estimated a rate of 28 @.@ 2 % ( 39 @.@ 3 % tax @-@ exclusive ) for 2007 assuming full taxpayer compliance and an average rate of 31 % ( 44 % tax @-@ exclusive ) from 2006 to 2015 ( assumes that the Bush tax cuts expire on schedule and accounts for the replacement of an additional $ 3 trillion collected through the Alternative Minimum Tax ) . The study also concluded that if the tax base were eroded by 10 % due to tax evasion , tax avoidance , and / or legislative adjustments , the average rate would be 34 % ( 53 % tax @-@ exclusive ) for the 10 @-@ year period . A dynamic analysis in 2008 by the Baker Institute For Public Policy concluded that a 28 % ( 38 @.@ 9 % tax @-@ exclusive ) rate would be revenue neutral for 2006 . The President 's Advisory Panel for Federal Tax Reform performed a 2006 analysis to replace the individual and corporate income tax with a retail sales tax and estimated the rate to be 25 % ( 34 % tax @-@ exclusive ) assuming 15 % tax evasion , and 33 % ( 49 % tax @-@ exclusive ) with 30 % tax evasion . The rate would need to be substantially higher to replace the additional taxes replaced by the FairTax ( payroll , estate , and gift taxes ) . Several economists criticized the President 's Advisory Panel 's study as having allegedly altered the terms of the FairTax , using unsound methodology , and / or failing to fully explain their calculations . 
