Both in the federal form and the state forms that have been proposed by the same groups, independent analyses have found that the so-called "FairTax" proposals to replace income tax with sales taxes aren't realistic, because the proposed tax rates would fail to replace the revenue of the replaced income taxes.<p>There are other problems as well; the page linked here states as a problem that that income tax, designed to be progressive (increased total tax rate as income increases), has some features which make it regressive in certain cases, however, the "FairTax" is regressive out of the gate -- because its a sales tax, the effective rate declines as mean propensity to spend declines, and that propensity declines with income.