Suddenly used goods will be preferred.
Yup. So?
If the demand for used good goes high enough, then the price of used goods will rise in relation. And then it gets to the point of equilibrium where people either can't get the used stuff or just prefer the new stuff.
The supply of used items is finite, heh. And any 'new' used items that feed into this market will have been taxed once already. =)
But with the market-driven reduction on the prices of new items without imbedded taxes under FairTax, most purchases will cost, roughly, the same. People ignore bargains all the time (I'm a big used-item nut) and if overall prices are about the same, most people won't bother.
Does the incentive to prefer used goods to new goods that the tax proposal would produce mean we can count on the environmental wackos to cross the aisle and help on this one?
"Suddenly used goods will be preferred."
Suddenly US produced goods will be on a level playing field with imports - both here in the US, as well as in foreign markets.