[pigdog]

"Not to mention the HUGE negative effect on the prices of imported products..."

Actually, it's not HUGE at all - merely the cost of the item plus the effective FairTax to end up with the cost of the imported thing (taxed for the first time).

That should certainly help boost sales of US made products, don't you think, since those prices will drop before having the FairTax imposed ? At least there will be a level playing field for taxing both types of products whereas now there is not.

[lewislynn]

merely the cost of the item plus the effective FairTax

Thank you for posting that because that is just a stupid statement...period.

[Always Right]

That should certainly help boost sales of US made products, don't you think, since those prices will drop before having the FairTax imposed ? At least there will be a level playing field for taxing both types of products whereas now there is not.

A legitimate point and the biggest reason why we should consider adopting some form of a sales tax. Unfortunately, I am not sure there would be any support for a greatly reduced flat income tax combined with a smaller sales tax rate that only excludes food and housing without the prebate nonsense. I just don't see how a wholesale transaction from an income tax to a sales tax can work.

[lewislynn]

That should certainly help boost sales of US made products, don't you think, since those prices will drop before having the FairTax imposed ?

Prices will drop? Only the tax would be a sure thing, everything else is wishful thinking.

Imports are less expensive because of labor and regulations, not income taxes. So unless the Fairtax is going to reduce labor costs (it doesn't) and eliminate regulations (it doesn't) there would be little if any price competition with foreign manufacturing...in fact I wouldn't be surprised if the Fairtax wouldn't be deemed illegal by the WTO.