[Principled]

I would still have to pay tax when I spend my money...That's why they call it a "replacement" tax.

That's right. This is why some say purchasing power will remain constant. Folks still pay tax, just pay the nrst instead of income, payroll, and embedded taxes.

[xcamel]

A big problem with the embedded tax issue for small business is that the "tax" value portion of your inventory can not and does not dissipate overnight. Inventory turn rates can be as little as one to two days, and as long as a year or more. Even with LIFO cost averaging on inventory values, either I keep my margins (maintain current pre-tax pricing) or the government is going to have to pay me the embedded tax value of my existing inventory on the day the law changes. Guess which one isn't going to happen.

It's the ultimate "catch-22" Prices go up 30%, my sales go down 50%, I'm stuck with the embedded tax cost of my pre-existing inventory, I go bankrupt.

[lewislynn]

That's right. This is why some say purchasing power will remain constant. Folks still pay tax, just pay the nrst instead of income, payroll, and embedded taxes

Except, for MY "purchasing power" to remain constant I have to charge the additional 30% tax to my customers that I didn't previously charge...get it?