"I never argued that such a tax scheme would not have lower compliance costs. That is not my worry but the unintended conswquences of imposing a 30% tax given that there is a psychology of the consumer to deal with. But the crushing effect on Big Ticket items is the killer."
So you fully support a system which provides an advantage to foreign producers at the expense of our own domestic producers, sending many thousands of jobs overseas in the process? You believe that, as a matter of public policy, that is what our tax system should be about?
That is another falsehood produced from a lack of understanding of economics and pricing. Incomes taxes do not figure into a product's price and therefore do not affect foreign trade.
Foreign products pay the same sales taxes when sold here. And the other taxes paid are HIGHER than here. Why do you think Europe is in economic doldrums and has unemployment rates over 10%? Its version of the FT (VAT) does not help either.
We have about as low an unemployment rate as can be produced without inflation. It is so low that millions swarm across the border each year for a little piece of the pie.
However, you are right about one thing, the collapse of the American economy resulting from the FT will hurt Europe's exports to us.