Are you operating under a set of FairTax assumptions that assume that the price of goods are going to come down by 22% on average so that the 30% FairTax can be added, and prices will stay the same?No but s/he makes the assumtion everyone has more money to spend than they earn without mention of where the extra money comes from...The fairtax money tree I guess.
Not to mention s/he assumes receiving a yearly rebate for a family of four for 32yrs into RETIREMENT....s/he also didn't account for the 25% interest rate reduction. Interest rates effect investments as well as lending.
It's "HE" if it is bothering you.
No, I didn't mention where the FCA comes from. The FairTax rate of 23% supposedly covers this amount. That would be an issue for a separate thread.
The FCA amount for a family of four according to the 2005 tables would be $5,902. The amount for a married couple is $4,402. I rounded down to $4K.
Yes, interest rates do affect investments. Lower interest rates mean higher corporate earnings and higher dividends can be paid out. Rob didn't say the hypothetical couple's money was invested in CD's or bank accounts. He said "dividend-paying investments" and I was allowed to choose the investments. I chose high-yield mutual funds.