The US trade balance is roughly $600 Billion per year. The Fair tax would increase tax revenue to the US treasurey by over $100 Billion without increasing the US citizens tax bill one cent.
These points miss the single greatest benefit of the fair tax. Under our current system approxomately 20% of the final sale product of a good or service is the embedded tax burden of the people and businesses that produced it. However, when a product is imported and sold, that 20% goes back to the originating country. Foreign suppliers have a built in 20% price advantage over domestic suppliers. Under the Fair tax, that 20% would be captured at sale and retained in the US.Besides all of that being totally unfounded BS, why would I want to increase the revenue to the treasury?...If they have a $100 billion dollar windfall, we've paid too much and I want some back.The US trade balance is roughly $600 Billion per year. The Fair tax would increase tax revenue to the US treasurey by over $100 Billion without increasing the US citizens tax bill one cent.