What about Savings? I finally get to a point in my life where I'm putting money away. The fair tax comes in and it loses 30% of its value?
What about the effect on tourism(non native US)? If prices go up 30% how many people are going to stay home and not come to the USA?
I don't know how much foreign tourism affects our economy, but it must have some effect in tourist cities like Orlando, NYC, Vegas, etc.
Also, what about Tax avoidance? I bet the black market shoots up, specially near Border areas where you can slip over the border and buy Canadian or Mexican.
No. It retains all of its value.
Fair tax on savings
Fair Tax FAQ
Check 'em out. They're quick and to the point. Come back w/ questions...:0)
"Also, what about Tax avoidance? I bet the black market shoots up, specially near Border areas where you can slip over the border and buy Canadian or Mexican."
Sure, let's talk about that. Let's be sure to remember that under the present tax system, pornography, recreational drugs and illegal labor fly almost totally below this system's radar. According to one economist, those three sectors comprise $1 trillion/year of our total economy. When the pornographers, drug dealers and illgal workers spend thier income, they will pay the NRST just like the rest of us.
Do you honestly believe that the border problem that you are so concerned about is anywhere near $1 trillion potentially?