Of course, this is assuming the embedded taxes will be removed by businesses. Some economists believe so.
Even if prices do not drop the part that was used to pay corporate income taxes once those are gone, the rebate and option for freedom in what you pay tax on STILL makes the FairTax the best plan out there.
I am pretty darn sure that prices would drop to the 35 dollar range as Boortz predicts, however. Why? They would need to drop in order to keep customers from sticker shock. Perhaps they could get by with 38 bucks or so. They would get a couple bucks more profit than now (since again, that extra dough above 35 now is currently used for taxes anyway, so its removal would just make common sense). But, it would not be an outrageous amount, and consumers would be able to choose what to get their taxes paid on.
If the companies didn't drop their prices, the doors would be wide open for me to start a company that could offer competitive products for lower prices. The market would adjust as quickly as new companies could begin operation. That would vary from industry to industry, but it would happen over time.....