Replies

I can't speak to the book, in that a) I haven't read it and b) I'm not much of an economist. I'm just trying to point out that the discussion of wages, prices, etc., often seems to miss the point that much of the "framework" through which we view these things will change under a radically different tax system.

As far as this specific issue, and whether or not it is a misrepresentation, I will reserve judgement until I hear either a rebuttal or an admission from the FairTax folks -- it is possible that something is being missed.

My interest in the FairTax has never been the economics anyway (though the discussion threads always seem to get dragged that way). Let me repeat something I posted on a different thread:

Most of the recent discussions and arguments about the FairTax here on FR have been of the economics variety, and have basically boiled down to "how many angels can dance on the head of a pin" arguments. Nobody really knows what the impact will be due to the dynamic effects of changes to the tax code (even tax cuts under the current system are hard to predict the effects of accurately), though guesses can be made by using certain assumptions -- and its these assumptions that appear to be the main point of contention in the arguments.
While it may be worthwhile to have these discussions, in my opinion, they miss the most important point of all with regards to the FairTax.
Freedom.
Imagine having no IRS to pour over your financial records.
Imagine not having to report your personal finances (income and certain expenditures) to the federal government.
Imagine not having to make investment decisions based on what will or won't subject you to additional taxes.
Imagine a tax system in which your total liability is simple, straightfoward, and doesn't require an accountant or computer software to calculate (especially when different accountants come up with different answers).
Imagine a tax system that doesn't play games with whether or not you're rich or poor, black or white, male or female, or any other social or economic factor.

That is the freedom that the NRST/FairTax will bring. That is the major reason why all of the other schemes advocated (flat tax, transaction taxes, etc.) are unacceptable.

That's basically my reason for supporting the FairTax too.

Imagine a tax system that doesn't play games with whether or not you're rich or poor, black or white, male or female, or any other social or economic factor.

What's to stop the politicians from placing "special" taxes on expensive items, like a luxury tax? For example, a car that's over $20,000 has a luxury tax of 100%.

re:Freedom

Thank you for pointing this out once again. Considering how many of our fellow countrymen have paid for our freedom with their lives, it is astonishing how easily we as a people can rationalize and justify surrendering it for a few percentage points one way or the other.