[painter]

"The NRST would level that playing field. Domestic goods could cost 20% less and still keep their same profit margins against foreign goods. The same holds true for exports -- US goods would leave the country 20% cheaper than before, either providing a higher profit margin or larger market share in foreign markets."

I was wondering when this would be brought up.Because NRST would be a boon to the jobs market.Foreign companys would have to manufacture their products here to be able to compete.

[phil_will1]

"Because NRST would be a boon to the jobs market."

Exactly! Can you imagine what a 15 - 30% price reduction would do to the demand for US products in other markets? On the other hand, adding a 23% (tax inclusive) tax on top of imports, while domestically produced products would stay approximately the same price they are now, would significantly impact the demand for our own products here.

In fact, the FairTax would work like an import tariff, in the sense that it would raise the after-tax prices of imports. In that sense, it would accomplish both of the primary objectives of tariffs (1) would shift demand toward domestic products because of the price differential, and (2) raise revenues to the government. However, unlike tariffs, the FairTax would NOT precipitate retaliation and a trade war, since we could point out that we are taxing the imports in a manner identical to our own production.

IOW, the current system is biased IN FAVOR of foreign producers at the expense of our own domestic producers. The FairTax would simply level the playing field. Those who are concerned about the loss of jobs - especially manufacturing - should demand that their representatives support the FairTax.

[ancient_geezer]

NRST would be a boon to the jobs market.Foreign companys would have to manufacture their products here to be able to compete.

Not only that, because of the advantages of an NRST to business, they would be lining up at the door looking to move in:

Rep. Bill Archer, Chairman, House Ways and Means Committee:

• "A recent survey was done, in Europe and Japan, of the major corporations and I was astounded at the results. They were asked, 'If the US abolished its income tax and went to a sales tax, would that have any impact on your decisions?' Eighty percent of the corporations said they would build their factories in the United States of America. Twenty percent said they would move their international headquarters to the United States of America."