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To: DivaDelMar
" I have consistently maintained that purchasing power will remain constant when the Fair Tax is implemented."

There's your problem. If food is one of your major expenditures then the FT will hit you harder than a household with no kids - especially in a Sate that does not now sales tax unprepared food. Even if you account for the prebate. A mother of 4 teenage boys will never buy into the FT since she does not want a adjusted gap increase in her food costs. There is no way the purchasing power will stay the same. Virtually everyone is different.

It took years for Wal-Mart to break into the food industry. Why? Because of the way food is distributed. They have taken lower margins on food than a traditional GS and some suppliers have stopped doing business with them. Their ability to buy meat has been hurt because of their practices - for example.

99 posted on 02/17/2008 3:02:33 PM PST by mad_as_he$$ (John McCain - The Manchurian Candidate? http://www.usvetdsp.com/manchuan.htm)
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To: mad_as_he$$

The mother of 4 will get a prebate to compensate for the tax on poverty level expenditures. Those who consume a large percentage of their income will pay a larger percentage of the tax. Those who save and invest, will not.


110 posted on 02/17/2008 4:41:31 PM PST by DivaDelMar (CRAm member-- (Conservative Republicans Against mcCain) Think you're entitled to my vote? CRAm It!!!)
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