"BTW, there is no incentive to save under the consumption tax like there is with an income tax."
So BOTH savings and consumption would decline under a consumption tax? What would Americans be doing with their money?
Oh, and Hripa says that charitable contributions will decline, also. That just about covers the waterfront as far as what one can do with money, doesn't it?
Everything that you can do with money will decline under the FairTax, correct?
Yes, due to the penalties imposed by the 'FairTax' system.
Allow me to repeat the first line I wrote (which hasn't been refuted as far as I've gotten on this thread):
A change in a tax affects that area of the economy . . . and beyond. Taxes hurt whatever is taxed. Income taxes hurt income (production). Sales taxes hurt sales (consumption). Higher rates have higher effects.