[Phantom Lord]

All I read by Boortz assumes that the vendor will be forced by “the market” to reduce his prices by the amount of income and other fed taxes; this is fantasy.

Fantasy?

Ok, you own a business. Your competitor across the street drops his prices. What do you do? Keep your prices up and lose customers and go out of business, or follow suit to remain competitive?

Or are you the first to drop prices to try and get his customers to come to you over him?

[MrB]

People who think the market doesn’t apply to prices post “fair tax” probably think that gravity doesn’t apply to airplanes.

This article quibbles about the percentage, when it’s the concept of eliminating income taxes that is the real issue.

It’s the same as the flat tax - as soon as you state a percentage, there goes the caterwahling about the rate, instead of the concept.

[steve8714]

OK, you own a business...why would you be first to give away money?

[Your Nightmare]

Ok, you own a business. Your competitor across the street drops his prices. What do you do? Keep your prices up and lose customers and go out of business, or follow suit to remain competitive?

What the hell do you think he's going to do? He's going to drop his prices. That's why it is stupid for his competitor to drop his prices. If they get into a price war, they both lose. They would both be better off leaving prices where they are.

Read some game theory.

[Dan Walsh]

With so many layers of taxation built in, it will take about 2 years for the market to completely them out of the end product pricing!