 Studies by Kotlikoff and David Rapson state that the FairTax would significantly reduce marginal taxes on work and saving , lowering overall average remaining lifetime tax burdens on current and future workers . A study by Kotlikoff and Sabine Jokisch concluded that the long @-@ term effects of the FairTax would reward low @-@ income households with 26 @.@ 3 % more purchasing power , middle @-@ income households with 12 @.@ 4 % more purchasing power , and high @-@ income households with 5 % more purchasing power . The Beacon Hill Institute reported that the FairTax would make the federal tax system more progressive and would benefit the average individual in almost all expenditures deciles . In another study , they state the FairTax would offer the broadest tax base ( an increase of over $ 2 trillion ) , which allows the FairTax to have a lower tax rate than current tax law . 
