[Turbopilot]

If ever there were a more powerful inflation accelerant than the 'fair' tax

I don't mean to pick on you, specifically, because you're far from the only person who's made such a comment, but I sure do get tired of hearing people describe the FairTax as "inflationary" on a conservative web site.

[cinives]

Same.

[SAJ]

It is not purely inflationary of itself; it is inflationary in the behaviour it will introduce into (or encourage)in the mktplace.

It is purely inflationary of itself regarding any contracts that tie wages or purchases to any price index. Wage agreements, I should think, would be more directly affected, but we would have to see how exactly this would play out. (C'mon mate, that should go w/o saying.)

Of course, if enough people get sick of a 'fair' tax regime, it might become somewhat deflationary, as people go outside the regime and are forced to discount prices as a condition of doing business and not getting caught.