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To: phil_will1
I think that I already addressed how the FairTax would help alleviate the trade deficit.

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.

210 posted on 03/21/2005 11:05:24 AM PST by A. Pole (Proverbs 26:11: "As a dog returneth to his vomit, so a fool returneth to his folly.")
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To: A. Pole

"National sales tax is not going to reduce trade deficit..."

Incorrect.

"...because it will be applied equally yo the American and foreign products."

Exactly! IOW it totally eliminates the bias of our current tax system which actually favors foreign producers over and above our own. It puts US producers on a level playing field and, unlike a tariff, could not be opposed by the WTO or our trading partners since it is not discriminatory (unlike a tariff).

Using tariffs to mask the bias in our corporate income and payroll tax system is a very inefficient way to go.


213 posted on 03/21/2005 11:20:48 AM PST by phil_will1
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