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I am surprised no one has attempted to answer my first Three questions (from Post 1):

1. I am not sure how purchases made abroad by Americans are taxed. Section 101-d-1 of HR25 implies that the 'FairTax' is a Use Tax. I have seen other information that purchases made abroad are 'FairTax'-free. If it is the latter, then foreign purchases by Americans will skyrocket. See also the US Supreme Court decision of North Dakota vs. Quill Corporation regarding the use tax.

2. I read Section 102-a-2 to mean that (initial public offerings) IPOs are not taxed, but would investment real estate be taxed?

3. Also, if a 'FairTax' is only levied on final retail sales, the 'fair tax' rate will have to be MUCH higher than 23% (inclusive) or 30% (exclusive rate). Today the feds spend 2.5 trillion. The GDP is over 11 trillion. Approximately two-thirds of that (7.26 trillion) is consumer spending. 2.5 trillion divided by 7.26 trillion is a federal sales tax rate of 34%. To say that government will pay taxes to itself is a circular argument. On a 77 cent item, everyone pays $1. When the government pays for it, it goes back into its own pocket. Sure a dollar comes out of the government's right pocket, but 23 cents goes immediately into the left pocket. If that isn't the epitome of an 'embedded' tax, then what is?

1. I am not sure how purchases made abroad by Americans are taxed.

They owe sales tax on it. Any property you aquire for personal consumption after Dec. 31, 2006 is taxed. Period. Used property which is not taxed is property which has had taxed imposed on it or was aquired for personal use prior to Dec. 31, 2006. Everything else sales tax must be paid, and as the Buyer without a official sales tax receipt from a registered merchant, you would be liable for it and required to submit a monthly statement and remit the tax.

1) it is the Latter because the Fair Tax is only applies in the US under new and retail purchases....

2)Yes, but the prices would be offset by the Embedded taxes..

3)The GDP is actually over 12.5 Trillion and not 11. What is the best way to increase tax revenue? It is not to raise taxes because that slows growth. It is to lower it because that allows more tax papers. For instance, business can hire more people thus more tax payers.