Manufacturing will suffer bigtime with significantly fewer people buying new goods.
Lets see, people will have more takehome pay plus a monthly demogrant cover NRST on purchases upto the povertyline of consumption, people earning more from increased investment enhancing the household budgets allow more spending not less. Export markets increasing due to lower manufacturing costs favoring competitiveness of US products in foreign markets.
I fail to see Manufacturing suffering as you imply.
and people will be buying less.
With more in people's pockets with which to buy, Does not compute.
Technical progress will slow with less money encouraging new products.
Who does that happen with exanding and competitive markets???
The poor may suffer as well,
Hmmm,
All legal residents will receive a demogrant called the Family Consumption Allowence(FCA) equivalent to the FairTax paid on essential goods and services. The FCA will be paid in advance, in equal installments each month. The size of the monthly FCA will be determined by the government's Poverty Level for a particular family size, multiplied by the tax rate paid to all households regardless of income or actual expenditure.
Every year, the Department of Health and Human Services [HHS] determine the "poverty level" for each family size.
|
The 2001 "FairTax" Family Consumption Allowance Figures |
|||
|
Family Size |
HHS Poverty Level |
Annual FCA |
Monthly FCA |
|
One |
$8,590 |
$1,976 |
$165 |
|
Two |
$17,180 |
$3,951 |
$329 |
|
Three |
$20,200 |
$4,646 |
$387 |
|
Four |
$23,220 |
$5,341 |
$445 |
|
Five |
$26,240 |
$6,035 |
$503 |
|
Six |
$29,260 |
$6,730 |
$561 |
|
Seven |
$32,280 |
$7,424 |
$619 |
|
Eight |
$35,300 |
$8,119 |
$677 |
1) Federal Register: February 16, 2001, Pages 10695-10697).
[ The monthly FCA for each adult is .23 * (HSS poverty level for a single person)/12 to assure no marriage penalty due to the manner in which the poverty level is dependant on family size. The monthly FCA for each child is .23 * (the incremental increase of HSS poverty level for a family with one child over no child) ] A. Geezer
A family of four, for example, could spend $23,220 per year free of tax because they will have received over the course of the year rebates totaling $5,341. $5,341 is the amount of sales tax paid on $23,220 in expenditures. A family spending double the "poverty level" or $46,440 per year will effectively pay tax on only half of their spending and, therefore, have an effective tax rate of 11 ½ percent or half the FairTax rate.
The beauty of the FairTax is that you can control how much you pay in taxes. If you happen to save, invest or spend a portion on used [previously taxed] items, you can get your effective tax rate below 9%.
To illustrate examine the tax burden that a family of four will have at various annual expenditure levels.
as the cost of used goods would rise substantially.
Why aren't they rising now? The same level of tax burden is embedded into the price of new goods and services today via the income and payroll taxes imposed on businesses causing the price of all products to be higher than they would otherwise be, as well as the fact that household takehome pay is reduced by income & payroll taxes causing a squeeze on household budgets.
By your theories, "used" goods should be demanding the same price as new goods now from the increased demand not only from higher priced "new" products, but tax limited household budgets as well.