"dancing with the hyena" means you get eaten when the music stops.
I'm beginning to believe that Boortz and Linder mis-spoke entirely and missed by a mile the greatest benefit of the fair tax. I don't believe that once the IT is eliminated that employers are going to make some arbitrary decision on how much to pay their employees. They pay them their gross - PERIOD.
The net result is that everyone's income goes up. The employer no longer has compliance costs, FICA, income tax liability. The employer will have SOME room to lower prices. I think that is in the neighborhood of 10-18&.
If all goods and services suddenly become tagged 20-30-% higher in price due to the NRST, there will be a transition period where retail sales will lag. In order to jump start those sales, sellers will lower prices.
Joe Blow has his whole paycheck which is probably 15-20% more than it was before.
But,guess what, if Joe's car needs repair unexpectedly he can defer paying taxes for a month or more. He can buy used and he will be getting his pre-bate for necessities.
Under today's system Joe doesn't have a choice. He has to pay those taxes every month. So he has to give up something, maybe his monthly contribution to his IRA. Under the FT he can give up paying Uncle Sam for a while.
But,guess what, if Joe's car needs repair unexpectedly he can defer paying taxes for a month or more. He can buy used and he will be getting his pre-bate for necessities.Buy used what? Used car repair service? Used car parts?