Let's go back to real estate. A developer invest many millions of dollars into building a housing development. The fair tax goes into effect and the houses can now be built for 20+ percent less. The developer doesn't even make 20% on the deal if things would have went right to begin with, so they go bankrupt.
Wrong transition business credit covering the embedded income/payroll taxes in that inventory is provided to the business on sale of the property to cover that condition.
Again, Read it. It is enlightening, then ask the questions.
mash yer clicker here ==> H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.
For additional information: http://www.fairtax.org, http://www.salestax.org & http://www.geocities.com/cmcofer/ftax.html
Wrong transition business credit covering the embedded income/payroll taxes in that inventory is provided to the business on sale of the property to cover that condition.And whose going to pay for the credit? We are. This credit is not accounted for in their "revenue neutral" rate. We are talking several hundred billion dollars. The 23% (actually 29.87%) rate is not realistic and is the result of a lot of accounting gimmickry. It just a marketing tool to get the suckers on board, and it's worked well on FR.