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Di: How can we effectively address concerns over point-of-sale “sticker shock” once the FairTax is added to local sales taxes?

Leo Linbeck:

Well there’s really nothing we can do about the local sales tax through the federal FairTax. We are of the view that the FairTax at the end of the day will not have a significant upward pressure on prices. We believe that there will be a lowering of prices at the producer level in a significant amount and significant enough such that the end result of pricing will not require the Fed to accommodate and that the retail price level will be virtually the same as it is under the current tax system, monetary policy being a constant. But having said that, at the state level unless they reform their state level tax system and in those 45 states that have a sales tax that means that they will have to reform it in a manner that more closely aligns with the base of the federal system and embraces the prebate system as part of its structure and eliminates from its terms taxing business-to-business transactions. In the absence of those kinds of reforms it is my view that the current sales tax system at the state level will, in fact, be an add-on to the federal level. But at the end of the day that is not a net negative impact from where they are today in terms of their state taxes, it’s a virtual push. But I believe that the prospects are very real that upon enactment.

That sounds like there's been talk of inflation fears if prices aren't constant...We know they couldn't possibly be constant with pre Fairtax prices.

Linbeck thoughts on top-down organization of the "grass-roots" movement:

I would call attention in particular to how effectively the Farm Bureau effort has been organized. John Collett in Kansas City and his cohorts have done a splendid job in conceptually organizing and then executing on the plan that they developed, a means by which we could propagate the FairTax around and through the entire Farm Bureau organization.

I learned recently that we have 61 volunteers in 34 states working on the distribution and dissemination of FairTax information to the Farm Bureau organization down to the county level. And I think that’s an example of what can be done.

Tom Wright has the laboring oar in organizing an effort with the AARP which, although it may be different in the type of organization that is needed, is of the same kind in trying to influence an organization from the grass roots up in support of the FairTax.