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"Does he think people will be buying a $21000+ economical car and paying close to $30,000 under a “F” Tax?"

If the car is an import, you'll add a $6300 Fair Tax to the $21,000 sticker price. To make matters worse, your bank will only finance what the car is worth -- $21,000 (less some down payment).

Meaning you've got to come up with, say, a 10% down payment ($2100) plus the Fair Tax ($6300), cash. Got $8400 in the bank laying around collecting dust?

Hey, it could be worse -- you could be buying a new home!

Now, in all fairness, you could buy a used car and avoid the Fair Tax. But, since that thought is occurring simultaneously to all car buyers nationwide, expect the price of used cars to skyrocket. Supply and demand, doncha know.

Or, you can buy a domestic car. According to some Fair Taxers, domestic car manufacturers will reduce the price of their cars by 23% when they remove the hidden taxes, then add the 23% Fair Tax, resulting in that $21,000 car costing the same. You'll still need a down payment and you'll still need to come up with $6300.

That is assuming the car manufacturers will pass on this 23% price reduction to the consumer and not keep some or all of it as profit or give it to the shareholders as dividends. Keep in mind that their foreign competitor is raising their price by 30%. If your competitor did that to you, would your keep your price 30% below his?

If the car is an import, you'll add a $6300 Fair Tax to the $21,000 sticker price. To make matters worse, your bank will only finance what the car is worth -- $21,000 (less some down payment).

Your statement is very shortsighted. Exported goods are not subject to the FairTax, since they are not consumed in the U.S.; but imported goods sold in the U.S. are subject to the FairTax because these products are consumed domestically. Your are essentially complaining that American companies will have a level playing field with foreign companies when the Fair Tax eliminates the 17 percent competitive advantage, on average, for foreign producers.

You'll still need a down payment and you'll still need to come up with $6300.

You are not considering interest rates will decline when The Fair Tax is enacted. It will eliminate business taxes and the compliance costs under the income tax. Banks will pass those costs onto the consumer due to competition.

“Or, you can buy a domestic car. According to some Fair Taxers, domestic car manufacturers will reduce the price of their cars by 23% when they remove the hidden taxes, then add the 23% Fair Tax, resulting in that $21,000 car costing the same. You’ll still need a down payment and you’ll still need to come up with $6300.”

Faulty math...why are you using fair tax rate as 30%? Fair tax at 23% on a 21,000 car is $4830. Now, if the hidden taxes on the car match this, the cost of the car should be $16,170. Fair tax on this at 23% is $3719. Cost of car, $19889.

As to the comments about domestic vs foreign, look at it this way...foreign costs less for equal quality, comfort etc. Fair tax will hit the net cost of the foreign car more than the domestic car if the US manufacturer eliminates the hidden taxes that are not there now. All of a sudden the US economy gets a big shot in the arm because domestic cars are now competitive with the foreign. This will ring true in every industry if we still have manufacturing for that industry.

Btw, I am not arguing for or agin the F-Tax. Just commenting on the comments I have been reading, and these in particular.