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To: robertpaulsen; Mumbles
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.
26 posted on 09/02/2007 9:33:11 AM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D
"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."

If foreign producers have a 17% competitive advantage, it seems to me that that the consumer benefits. You want to level the playing field by raising one side not lowering the other. Consumers would pay more, 30% more, for all imported goods. And just about everything I buy is imported.

"You are not considering interest rates will decline when The Fair Tax is enacted."

And here you told me the Fair Tax is simple -- simpler than a flat tax. You expect me to believe interest rates will decline because all the domestic banks will all decide to pass on all the savings they all get.

Sure they will. Just like all the domestic manufacturers will all pass on all the savings they all get too, in spite of the fact that their overseas competitors are raising their prices 30%.

Even hear the business phrase, "Leaving money on the table"? Do you know what that means?

33 posted on 09/02/2007 10:36:59 AM PDT by robertpaulsen
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