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To: phil_will1

what would the nrst do to offset this? all I can see is that it would be neuitral at best, harmful at it's most likely


141 posted on 03/08/2005 11:16:59 AM PST by camle (keep your mind open and somebody will fill it with something for you))
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To: camle
all I can see is that it would be neuitral at best

It is designed to be revenue neutral. Please read the documentation before coming here and dissing on it.

149 posted on 03/08/2005 11:22:01 AM PST by numberonepal (Don't Even Think About Treading On Me)
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To: camle

"what would the nrst do to offset this? all I can see is that it would be neuitral at best, harmful at it's most likely"

It would stop imbedding the cost of our tax system into our domestic production and would, instead, tax all items purchased for personal consumption here in the USA (including imports) equally. That means that no longer would our trading partners ship their VAT relieved goods here to compete with our tax laden goods. It would mean that we could export into their markets at a 20 - 25% reduction in price with profit margins comparable to what they are now. The demand for US goods would increase in many markets around the world, including our own.

What many Americans do not realize is that we currently have a tax system which creates a bias in favor of foreign producers at the expense of our own. This isn't some conspiracy; noone has deliberately designed it that way. However, with globalization sweeping the planet, we cannot afford to ignore this problem any longer.

There are other ways to approach this. VATs are typically border adjustable. However, VATs can be extremely complex and have high compliance costs as a result. Unlike the tax itself, compliance costs are not border adjustable. Also, no one has introduced a proposal for a VAT which would account for about 95% of all federal revenues. The FairTax is the best proposal introduced so far from the standpoint of international competition.


161 posted on 03/08/2005 11:32:15 AM PST by phil_will1
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