The boost comes from eliminating the cost of tax compliance at EVERY stage of production--and not only the cost of tax compliance is eliminated, but the gigantic, politicized, greedy, unwieldy, pork-stuffed, unreadable current tax code is ALSO gone! Gone are the costs of hiring tax attorneys to lobby for miniscule reductions in industry-specific taxes that strangle production! Gone are the costs of thousands of federal tax offices, machinery, employees, supervisors, computers, telephones, papers, mailing costs, specialists--GONE! The savings to government would be in the many billions of dollars--any idea what tax compliance costs YOU, costs business, costs the government, costs the economy? GONE!
If it was a simple sales tax (and that would be the only way it would be better) then it would mean a major shift in our economy away from an army of accountants and attorneys that would suddenly find their livelyhood vanished in a puff of smoke.
Substantial, sudden change like that is NEVER good for an economy.
NEVER!