[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.

[painter]

"(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."

I didn't think about that.The gov would get %23 increase in taxes from foreign companies that NEVER paid US taxes.That could amount to 100's of billions of dollars!!!