Please tell me what would cause this "economic boom" to take place....
"Please tell me what would cause this 'economic boom' to take place...."
Several factors, but I will list perhaps the three biggest ones.
1. Various studies have attempted to measure the compliance costs of the current system and they vary widely, depending on how expansive a definition of the term "compliance costs" is used. However, all these studies show that those costs under the current system run into the tens of billions of dollars per year. They are probably well over the tax cuts that were so hotly contested during Bush's first term. Most, if not all, of those costs could be saved under the FairTax. Chairman Greenspan testified before congress during the go-go late 90s about the success of our economy in growing rapidly with modest inflationary pressure. He would typically be asked how he accounted for the fact that growth rates of 4% and above were traditionally thought by economists to be inflationary and yet we had little inflationary pressure after several years of 4+% growth. I won't attempt to recount Greenspeak verbatim, but a one word summary of his stock response was "productivity gains". Ok, that's two words. There is probably no single public policy decision which would have a greater impact on national productivity than getting rid of a horribly antiquated and inefficient federal tax system.
2. We currently have a tax system which puts US producers at a disadvantage in our increasingly global economy. The FairTax would create price shifts which would make US produced goods more competitive than under the current system - or under the flat tax. More demand for US produced goods means more capital investment and more jobs here in the USA.
3. Current estimates are that there is approximately $11 trillion stranded offshore by our tax system. Much of this would come back into the USA looking for good investment opportunities if we removed the financial impediment to doing so.