[Vinnie]

There's less sticker shock than you imagine since used cars or homes are no taxed.

Exactly. The demand for used items will skyrocket as will their price. No one wants to pay the 'fair tax'.
Can you imagine paying 23+% on a $200k home?? Or even a $35k auto?
I wouldn't. New home and auto sales will die.

In addition, the prices of taxable items will actually decrease with the FairTax as the cascading, embedded tax costs which artificially raise prices presently will be removed with the FairTax causing prices to go down before any tax is applied. Overall prices probably won't change much.

Were you around during the 'sugar crisis' circa early '70s?
The price of sugar skyrocketed. Soft drink makers raised the price of soft drinks, a lot.
But guess what? They raised the price of artificial drinks also. Even though they don't contain sugar.
Depending on industry to drop their prices because they have come into a tax-less windfall is... I won't count on it.

[Sprite518]

How is that different from today? You are actually taxed at a higher rate? How you might ask??? Well you are probably taxxed around 25% or more on your pay check. Compound that with the State, city, local, and sales tax. Just because you cannot see it does not mean its not there. BTW, your not even factoring in the embedded taxes.