"If there were a Fair Tax, everyone would be waiting around for everyone else to lower their prices first and no one would ever do it.."
Right. No one would understand that they could increase market share by lowering their prices and that they could increase their profits by increasing their market share.
Right. No one would understand that they could increase market share by lowering their prices and that they could increase their profits by increasing their market share.
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Gee, thats nice in theory.
I run a service business which charges XX an hour. Under the "fair tax" system I would have to drop my hourly rate to keep prices where they are now. So I am making less per hour. Am I keeping more of my check? maybe. If its not there or my clients decide its not worth spending the bucks, no.
Competition may possibly force prices down - but you would need a deflation in value of things to keep prices where they are now.
Sorry, but the claim that you will get 50% more business by adding on a 25-30% sales tax (while removing income tax) is wrong.
"Fair tax" might be good for goods based businesses (larger ones), but it will crush the backbone of America, the small business.