They can only be passed to the consumer via price reductions if they are removed from the employees check in the form of wage reduction. Otherwise the savings are passed onto the employee and there is no reduction in cost of goods. Once the 30% sales tax is added, prices go up 30%. Taxes have to come from some place, but in the fairtax world of economics, they just appear from nowhere.
It would be really great if you would actually read HR25 before you spew this stuff......
As all Fair Tax opponents do, you lie about the tax rate. It is a 23% inclusive rate. Not a 30% exclusive rate.
At least be honest in your commentary. Though that is usually not the case with Fair Tax opponents. They always lie and change the terms.
http://www.fairtax.org/site/PageServer?pagename=about_faq
#17
How does the FairTax affect wages and prices?
Americans who produce goods and earn wages must pay significant tax and compliance costs under the current federal income tax. These taxes and costs both reduce after-tax wages and profits and are then passed on to the consumers of those goods and services in the form of price increases. When the FairTax removes income, capital gains, payroll and estate and gift taxes, the pre-FairTax prices of these goods and services will fall. The removal of these hidden taxes may also allow wages to rise. Exactly how much prices will fall and wages will rise depends on market forces. For example, in a profession with many jobs and too few to fill them, wages will likely increase more than in fields where there are too many employees and not enough jobs.
Its 23% and not 30%. It is an inclusive tax, not exclusive like the current tax. If you want to quote both with an exclusive tax rate, then anyone in the 25% tax rate and up is paying 33% currently.