"How is this going to fix the problem with trade/budget deficits, with rising costs of health care and with the workers losing ground?"
I think that I already addressed how the FairTax would help alleviate the trade deficit. As for the federal budget deficit, the primary factor is that economic growth has declined. The most effective way to reduce the (federal budget) deficit would be to accelerate the rate of economic growth. That is exactly where the FairTax comes in. The primary study conducted on the economic impact of the FairTax indicates that GDP growth would be a smoking 10+% in year 1, gradually declining in subsequent years, until the economy is 1/4 to 1/3 greater than it would have been under a continuation of the current system. That would go a long way toward alleviating the budget shortfall.
If you are suggesting that we should not address the tax system because there are other contributing factors relative to the trade and federal budget deficits, I think that is a difficult position to sustain.
Where?!
If you are suggesting that we should not address the tax system because there are other contributing factors relative to the trade and federal budget deficits, I think that is a difficult position to sustain.
I said we SHOULD address the tax system. VAT is being used as disguised tariff by the other countries, that is why USA must to imitate it in order to compete or to restore tariffs to the comparable degree. (Tariffs are the form of taxation and the main one established by the Founding Fathers).
National sales tax is not going to reduce trade deficit because it will be applied equally yo the American and foreign products.