Of course, you ignore the fact that if that $7,700 worth of "stuff" were produced in the USA, it would have cost approximately $10,000 under the current tax system.And you ignore the fact that the only way prices can drop like that is if wages are reduced. And since wages can't be reduced across the board, price almost certainly won't be going down.
As you know the EFFECTIVE rate of the FairTax only approaches (but never quite reaches) 23% only for relatively high consumption levels.They would have to be very poor to approach an 5.4% effective rate under the FairTax.
In fact, those consuming exactly at the poverty level will have a 0% effective rateThat's not true. People consuming exactly at the poverty level will have a higher than 0% effective rate. It's closer to 4%.
that doesn't count the benefit of seeing pre-tax prices of US produced goods decline.But they won't. Are you still singing that tune?
Wrong answer, wages are not the only thing that affect prices. You have the price of doing business ("corporate taxes"), supplies, materials, utilities, transportation, etc. on top of wages. Prices can drop due to reductions in the cost of any/all these items. The fair tax would eliminate the corporate taxes, which would also reduce the cost of all the items due to their corporate taxes, which are embedded into their prices, being eliminated.
They would have to be very poor to approach an 5.4% effective rate under the FairTax....People consuming exactly at the poverty level will have a higher than 0% effective rate. It's closer to 4%.
Not true, the prebate would cover that. Also, if they were shrewed enough in their buying they could actually make money from the prebate by paying less sales taxes than they get in the prebate.