Thanks for the post. Revenue neutral means revenue still has to come from somewhere. In theory, AFT says the revenue will come from sales taxes on items who's gross prices will decline due to the disappearance of imbedded taxes. I think we are beginning to see that the only possible source of this is corporate taxes and I think we can debate who actually pays those taxes. I'm going back through the AFT website.
"...I think we are beginning to see that the only possible source of this is corporate taxes and I think we can debate who actually pays those taxes...."
I think that is an accurate statement of the issue. I find the explanations from the Institute for the Research of the Economics of Taxation (www.iret.org ) to be quite helpful.
When the FairTax was written, I think it was probably accurate to say that the full value of corporate taxation is passed on to consumers. With the "Wal-Mart" effect keeping a lid on prices everywhere, the ultimate incidence of the corporate tax may be falling on the working stiff, which I believe is the conclusion reached by Steven Entin of IRET.
In any event, wherever the ultimate incidence falls, we'll be infinately better off once Title 26 is repealed and the FairTax is enacted.
My best to all....Goddess (allow me my fantasy!)
Only guessing, but with increased economic activity that is expected and (I think) intuitive, higher sales, even at lower prices, will generate the needed revenue. We need to remember that sales will not be static but will enjoy a very dynamic change upward.