The 30% or Whatever the rate would be is already added into everything anyway. That’s how economics works. This is a change in HOW it is collected and WHO pays the bulk of it. But nothing will cost more in actual money and likely will cost far LESS in the long run.
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The 30% or Whatever the rate would be is already added into everything anyway.No it isn't. You ever bought anything on sale? 50% off? What happened to all that tax that was added in?
That's assuming the manufacturer will take all the embedded costs and use that money to reduce his price 30%. When the Fair Tax is then added, the retail price remains the same. Correct?
What if the manufacturer decides to keep some or all of that embedded cost as profit? Or use it to give his employees a raise? Or to increase his dividend to his shareholders?
You may think he has to reduce his price to be competitive. Not necesarily. If his competitor is foreign, they have no embedded cost to work with. That Chinese imported good will rise 30%. If I was competing against that import, why should I cut my price 30%? I can keep 29% and cut my price 1% and still be lower than the import.