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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...

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.

You may want to read up a bit on trade. Our dealings with foreign economies is in equalibrium. We can't increase foreign investments and exports at the same time. The FairTax won't change that.