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To: carenot
OK, nevermind the embedded taxes. I like the Fair Tax better than what we have now.

That's great. But sell the fair tax on its merits, not on some fairytale that everyone gets a 25% raise and all prices stay the same. I think there are some legitimate advantages to going to a sales tax, but most of what is presented are gross exagerations sprinkled with some big lies. I think going to a sales tax biggest impact will be on exports. Our exports will be cheaper, at the expense of imports being more expensive once our tax is added. That will have a positive effect on our trade balance, but will be inflationary to our consumers.

283 posted on 08/23/2005 7:11:38 PM PDT by Always Right
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To: Always Right

It's no fairy tale and no "big lie" as you like to promote.

As to imports being affected - sure thay will be; by the amount of the FairTax on those things that are taxable. Whether this raises prices to consumers or not is hard to tell since probably its biggest effect will be to slow sales of imports meaning that consumers buy less of those higher-priced imported things (and not pay more for them, though a few will).


321 posted on 08/23/2005 8:27:29 PM PDT by pigdog
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