OK, it has to do with the new sales tax I now have to charge my customers. On $7.5 million in sales, I have to charge my customers $2.25 million in sales tax. Under NRST, I would have to cut my costs $1.725 million so I can charge my customers the same gross amount. I look at all my compliance costs, I look at all my payroll taxes, I look at all my subcontractors taxes, and there is no where close to $1.725 million to save. Absolutely impossible. Under NRST there is no way around me having to charge customers a lot more to buy a new house. And I mean a LOT more.
If your vendors don't adjust price, find one who will. Just like today, you manage decisions on cost. Vendors will adjust their prices or lose business. Vendors will have cost cuts too - and so will their vendors and labor, and all of them will have analagous savings, and so on until the beginning of the chain. And your business purchases are not taxed...neither are the business purchases of your vendors or their vendors or their vendors' vendors....
Whatever adjustments you are forced to make in price will be the same adjustments other builders must make. The whole world isn't coming after always right to put him out of business.
THe overall economy will have stable prices - those products with longer production chains will save more - those products with fewer links in the production chain will save less - but it will be the same for all in the sale of that good.