“Implementation of the Fair Tax will not be as easy as some would have it. All of the current inventory, both finished goods and inventory in the production flow have the 20% tax burden embedded in them already. A transitional process will be required to deplete current inventory and move to inventory which does not have an embedded tax content.”
That is why there is a transitional credit included in the bill for holders of inventory as of the effective date of the FairTax’s implementation. If it were not for that credit, your point would be true.
>>That is why there is a transitional credit included
Is there a traditional credit included for those of us who were dumb enough to save and try to fund our retirements... with savings $ that have already been taxed? Or are we just SOL?