| Eomund said: This thread isn't simply a Pro-FairTax only thread. I want the detractors to factually attack it so they can be set straight.... |
You should probably avoid telling everyone that you're right and they're wrong right off the bat if you want to foster an open discussion.
Also, I know this was brought up already (sorry for coming to the thread late) but the 23%/30% thing is really important. When you tell someone that a tax is 23%, they assume that a $1.00 item now costs $1.23, when it would actually cost $1.30 (because 30 cents is 23% of $1.30). Yes, it's an inclusive tax, and we get that, and it doesn't matter, because misleading is misleading no matter how technically correct it may be. The Fairtax is a 30% sales tax.
I'm in favor of a consumption tax, btw. I don't like all this "prebate" stuff, I think that we should instead just not charge the consumption tax on basic needs like food, clothing, the first $20,000 of your first car's value, the first $X of your home's value or the first $Y of your rent each month, etc.
As far as the issue of spending decreasing because of people saving more money, this is not such a big problem, but it is the reason that we need a transitional period. Two things are going to happen simultaneously: Prices will go up, and paychecks will go up. Consumers might have "sticker shock" for a few seconds until they realize that they're also making a lot more money. Yes, savings will be encouraged even after the "sticker shock" wears off, but this is not a bad thing. When people have more money saved, they will spend more money because they will be more financially secure. A good average credit rating is good for the economy, not bad.
EDIT: Ah, used goods! I knew I was forgetting something. I would think used goods that are sold back from a reseller would still have the Fairtax applied. But you wouldn't need to pay a tax at a garage sale or anywhere that you don't need a business license.
