It's no secret... it's because the existing tax system discourages saving money and encourages spending it.There's no proof of that.
The Fairtax by your/it's own admission lowers interest rates. Where's the "saving" incentive in even lower interest rates?...Oh wait I know, (I'm supposed to think) I'll have more money to save at an even lower rate than before WOW!
And, what is saved money for, count, look at?
And, if you're admitting the Fairtax discourages spending how is that good for the economy?
And, if spending is dicouraged what would happen to the rate? IOW, what's the point of the "sales tax" if your goal is to discourage "sales"?
Fairtaxers lack any logic.
And the SQLers lack any truth.
The Fairtax by your/it's own admission lowers interest rates.
Yes, it does. Do you disagree?
Anyway, the yield will remain nearly constant. After tax, the same amount of money will be available to spend. It's nothing more than a swap for tax paid on investment for a tax paid at retail consumption.
Interest rates today are inflated by costs of our income tax system. When those costs are removed, the rate can fall near or to the tax free level.
It's not hard. People still pay taxes, just at a different time (if they're paying any tax now Lewis).
Like the price thing you're hung on... nominal prices may change, but real prices won't. Purchasing power remains constant. Yet you seem to think prices could rise without a corresponding change in wages. You are myopic in your emotional hatred of tax reform. It makes you look silly - that along with your problem with numbers makes you an entertaining poster.