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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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To: robertpaulsen
If foreign producers have a 17% competitive advantage, it seems to me that that the consumer benefits.

Americans do not benefit when American products cost more than foreign products. American companies lose business to foreign companies. The tresult is American businesses must either layoff employees to cut costs, go out of business or relocate to a foreign country. Any way you look at Americans income and consequent purchasing power will be reduced. That is exactly what has been happening for many years.

Abolishing corporate taxes will encourage those companies to return to the U.S. thereby creating more jobs for Americans, creating more income and spending. Consumers will benefit and the U.S. economy will grow.

You want to level the playing field by raising one side not lowering the other.

I couldn't care less how the foreign countries are adversely effected. I'm more concerned with our country. apparently you are as concerned about the former as you are the latter.

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.

You can choose to ignore the basic principle of competition but that doesn't change the fact it has been, is and always will be integral part of our free market system. The airline industry is a prefect of example of one business cutting its price forcing competitotrs to do the same or lose business.

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

Putting more money in people's wallets will enable companies to have more money on the table.
47 posted on 09/02/2007 1:18:46 PM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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