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To: Defend Liberty
Doing so will increase the people's purchasing power...

By increasing the cost of goods 20-25%. That is called insanity.

23 posted on 03/17/2011 6:09:46 AM PDT by The Theophilus (Pray for Obama (Psalms 109:8))
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To: The Theophilus
By increasing the cost of goods 20-25%. That is called insanity.

It doesn't increase costs at all on used items or items purchased by businesses. You also fail to understand embedded corporate incomes taxes, along with compliance costs passed onto the consumer, already amounts to nearly 23% of the price. The Fair Tax will remove those embedded taxes from the price and show that 23% separately on the receipt.

Moreover, price increases will vary by industry but any price increase will be approximately no more than 8% on domestic goods since employers will most likely not pass onto the consumer the savings of no longer paying the employer matching tax but will pass on savings of other federal taxes no longer collected by the employer. Prices will increase by the range you cite for foreign goods since they will currently don't have a consumption tax imposed on imported goods to the U.S. but will have it imposed under The Fair Tax. That will benefit U.S. firms who are at, on average, a 17% disadvantage with their foreign competition. Competition will reduce any price increase to some extent overtime.

Any price increase on domestic goods will be more than offset by the fact no longer will taxes be imposed on wages, capital gains, estates, interest on savings and used items.

It's insanity to oppose a system that will shift power away from the federal government and back to the people by allowing them to decide when and how often they are taxed based on when they make purchases.
77 posted on 03/18/2011 4:27:05 AM PDT by Defend Liberty
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