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To: ancient_geezer
The thing people really have to look at is will the fair tax increase the purchasing power of my *time*. If I can buy more with an hour of work than I could before do I really care if I am making more or less?

All I have seen people do is quibble about how much people will make or how much things will cost, neither of these live in a vacuum. Lets talk about whats important...

283 posted on 08/25/2005 2:23:32 PM PDT by N3WBI3 (If SCO wants to go fishing they should buy a permit and find a lake like the rest of us..)
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To: N3WBI3; RobFromGa

Dear N3WBI3,

The NSRT is designed to be revenue neutral. Thus the overall effect, at least initially, is that folks will have the same purchasing power as before.

My own thinking is that some folks will come out a little ahead, and some a little behind, some folks will be big winners, some big losers. But for there to be revenue neutrality, it's got to even out across the board.

The proponents of the NSRT assert that there would be significant growth due to changing to the NSRT.

Maybe.

But the whole point of what RobFromGa did was to ascertain from the man who developed the economic model on which the NSRT is based whether folks would enjoy an immediate increase in purchasing power. The answer is, no, on average, people would not.


sitetest


285 posted on 08/25/2005 2:27:57 PM PDT by sitetest (If Roe is not overturned, no unborn child will ever be protected in law.)
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To: N3WBI3
The thing people really have to look at is will the fair tax increase the purchasing power of my *time*. If I can buy more with an hour of work than I could before do I really care if I am making more or less?

You must also consider how would this affect people who have already "worked" all their lives and exchanged their work for money that they have in bank. Or people who are on a fixed income. They limit the possible choices you can make with respect to inflation or deflation of the dollar.

The purchasing power of a dollar in the bank cannot change on the day the FairTax is introduced unless you plan to also introduce NewDollars at some exchange rate to "Old" Dollars.

288 posted on 08/25/2005 2:32:53 PM PDT by RobFromGa (Afghanistan, Iraq, Iran-- what are we waiting for?)
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