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To: phil_will1
But if your accumulated wealth is in equities which increase substantially in value during the first two years of the FairTax, that pretty much wipes out any differences in how much you pay for bread, milk, socks and shoes during that two years, doesn't it?

I have no interest in debating what the macro-economic effects of this plan will be on the future equity markets until we are able to agree that the plan as described is based on a fundamental misrepresentation regarding the effect on immediate retail prices.

166 posted on 08/23/2005 1:07:29 PM PDT by RobFromGa (Afghanistan, Iraq, Iran-- what are we waiting for?)
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To: RobFromGa

"I have no interest in debating what the macro-economic effects of this plan will be on the future equity markets until we are able to agree that the plan as described is based on a fundamental misrepresentation regarding the effect on immediate retail prices."

Well, we don't agree on that. I will concede that imports will be significantly more expensive and I do wish that Boortz and Linder had made that clear in the book. When I explain the proposal to people, very few have a problem with that. They recognize that we have a huge and growing problem with our trade deficit and that something has to be done. If it means we ship in less cheap stuff from China, sobeit. Most Americans don't have any idea about what is going on in China and India right now and what an impact it is going to have on us over the next couple of decades. They are still concerned about our balance of trade, even without that understanding. Most Americans instinctively recognize that we, as a country, cannot continue to consume more than we produce on a long term basis without serious economic repurcussions. The disruptions that you are so concerned about from converting to the FairTax now are trivial compared to what may very well happen if we continue to ignore our growing balance of trade deficit.

The amount of imbedded taxes in US produced goods may not be 22%. However, it is almost certainly well above the 10% that you come up with. Some of this is a "who do you believe" dilemma. Do I believe the independent economists (who in many cases don't support the FairTax) or do I believe a bunch of anonymous naysayers on an internet blog, none of whom will acknowledge the deficiencies of the current system nor will they present their professional economic qualifications, nor will they appear in public and stake their own personal and professional reputations on their positions?

I have to tell you, that is a very, very easy decision for me.

If you don't want to post to me because I don't take your accusations at face value, be my guest. Perhaps I shouldn't respond to you either, since I have asked you and the other defenders of the current system how the President's Commission missed the mark so badly in assessing the American people's attitude toward the current tax system and not one of you has offerred any explanation. See my post # 152 on this thread.


200 posted on 08/23/2005 2:12:09 PM PDT by phil_will1 (My posts are in no way limited or restricted by previously expressed SQL opinions)
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