[Your Nightmare]

Whether as an employee or as an independent contractor, the lower cost of making deliveries to the retailer will help lower prices, right? Am I missing something?

It's a matter of scale. If you keep prices the same with tax (lower sticker price) and lower my wages, I don't have much higher purchasing power. If you let prices rise with tax (sticker stay the same) and let my take home rise, I would have roughly the same purchasing power as the other scenario. The question becomes, which is easier to do, lower wages or make prices rise? In the end, this is really the decision of the Fed's monetary policy. Every (literally, every - including the authors of the FairTax) economist I've read whose has commented on the subject has suggested that the Fed would work to keep wages the same and raise prices.

[Your Nightmare]

Ï„est

[socialismisinsidious]

I've been trying to catch up and read thru these posts...egad! don't you people sleep!?

even if purchasing power changes very little (take home pay remains the same/prices remain the same with tax) there would be some psychological effects of The Fair Tax---not having an income tax, no corporate taxes is going to cause changes to the economy, create jobs etc...right? There would be economic growth and wages would increase as a result of that. no?
plus capital from overseas would increase too as well as overseas investments b/c we would have no income tax, which would stimulate our economy and that would trickle down to wage earners....

maybe this is getting over my head (someone mentioned calculus on this thread) but am I that far off base?