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Even if I bought your point that monetary exchange rates could be manipulated to reinstate the preference that our tax system currently provides to our products in foreign markets (and I certainly DON'T agree with that), that leaves open the question of our own market.

It's not my point, it's the point of many economists. Here's one example, there are many more.

You know, if you start reading stuff that isn't on FairTax.org, you might learn something (like the AFT is only interested in marketing, not facts).

"You know, if you start reading stuff that isn't on FairTax.org, you might learn something (like the AFT is only interested in marketing, not facts)."

Oh, I have read plenty of stuff from the guardians of the status quo that you idolize. The JCT, Brookings, all that crowd. AFT exists to promote and advance the FairTax proposal. These other organizations exist to perpetuate the current system no matter how much economic damage it does. Like you, they have a personal vested interest in maintaining a system that they benefit from - even if they are in the minority.

At least AFT's agenda is upfront.

YN,

So according to the tax lobby, exports will not go up over the long term (only the short term) because the dollar will strengthen.

So let me see... THE FAIRTAX WILL CAUSE THE DOLLAR TO GO UP IN VALUE.

Do we have any current issues with the value of the dollar dropping??? YES!!!

Of top of that, the tax lobby study didn't take into account the massive increase in the incentive to invest and do business in the US that the FairTax will bring. They did a simple tariff analysis, not looking at the overall business/investment environment.

But even if the tax lobby is correct, the dollar would still go up, which is needed anyway. And it wouldn't be a bilateral adjustment either. Sure, trade with Europe, Japan, and South Korea would cause the dollar to rise against the Euro, Yen, and Won but not a ll currencies. The Chinese Yuan is PEGGED to the Dollar, so the FairTax would make Chinese exports (along with any other country with a pegged currency) to the US LESS COMPETITIVE.

Keep in mind that China is by far the fastest growing economy on earth. What else would this more expensive Chinese Yuan do? It would hurt their exports to Europe, Japan, and South Korea, causing the Euro, Yen, and Won to rise against the Yuan. Wouldn't that loop everything back around and make US exports once again more competitive???

Nice try YN...