As they are selling the FairTax plan, if it was logical, it would be great. Every wage earner and businessman still engaged in creating new income would increase their purchasing power overnight by 25% plus get a prebate to boot. Every person living on accumulated wealth would have the same purchasing power as now, and even though they wouldn't receive a big pay raise, they would at least get the prebate.
It sounds great, and if that were actually possible I would be all for it. There would be no losers.
But in my opinion, the plan is being misrepresented. Can you answer the point I raised in my letter about how the plan is flawed. How a business cannot reduce prices by 20-25% if he pays his employees their full paychecks.
Please look at my letter and explain where my logic is incorrect.
And, I've spent more time discussing the FairTax on FreeRepublic this week alone than I spend on taxes both personally and for my business in a whole year. Does that mean that if I quit FR, I can lower my prices?
I answered that above. You are operating under the assumption that the witholding on employee wages are the only fed taxes paid by a business. You are dead wrong on that.
(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)