No. I don't see prices increasing. The costs that are eliminated from the production chain come to 22% or so. That's the amount of the nrst.
Perhaps I should add that the price will remain constant in any competitive industry.
"That I agree with. But do we agree that gross prices will increase?"
"No. I don't see prices increasing. The costs that are eliminated from the production chain come to 22% or so. That's the amount of the nrst.
Perhaps I should add that the price will remain constant in any competitive industry."
The part that needs to be emphasized is that the prices of imports WILL increase, since they won't have the cost savings from the removal of the current system to be passed on. In effect, we are removing a system that is biased IN FAVOR OF foreign producers and replacing it with a system which would be neutral. Unlike adding import tariffs to mask the underlying imbalance of our tax system, converting to the FairTax would be totally defensible to the WTO and to our trading partners.
Given that globalization is the most powerful economic force on the planet today, it makes no sense whatsoever to continue with a tax system which puts our producers at a marked disadvantage.