What economic changes come at the retail level with the FairTax?
"Our baby boom generation has been trained to spend money before inflation eats it up or savings is taxed away. This group, for good or evil, will
likely spend their initial pay raise. Others will recognize the advantages of savings and investment. There will be a whole new round of home
refinancings. There will likely be a lot of interest in the actual cost of the federal government when consumers see their most recent contribution at
the bottom of each retail receipt.
Since the FairTax plan is revenue neutral, the same amount of resources is extracted from the economy as is extracted under current law. These funds
are, however, extracted in a less economically damaging way. Every known economic projection shows the economy doing better, often much better, under
the FairTax.
Because the economy grows, is more efficient and more productive, that means investment, wages, and consumption are higher than they are under the
income tax.
interest rates :
"First, interest rates drop quickly by approximately one-quarter. Interest rates include compensation to the lender for the tax that they must pay on
interest you pay them. That is why taxable bonds bear a higher interest rate than tax-exempt bonds. When the tax on interest is removed, interest
rates will drop toward today’s tax-exempt rate.
Second, under the current system, savings and investments are taxed. Under the FairTax, savings and investments are not taxed at all. As Americans
save more money, the pool of funds in lending institutions grows. When you add to this the flood of capital currently trapped offshore, we realize a
huge increase in the pool of capital, thereby causing the cost of borrowing funds to drop."
How does this affect U.S. competitiveness in foreign trade?
"Because the FairTax is automatically border adjustable, the 17 percent competitive advantage, on average, of foreign producers is eliminated,
immediately boosting U.S. competitiveness overseas. American companies doing business internationally are able to sell their goods at lower prices but
at similar margins, and this brings jobs to America.
In addition, U.S. companies with investments or plants abroad bring home overseas profits without the penalty of paying income taxes, thus resulting
in more U.S. capital investment.
How does this affect U.S. competitiveness in foreign trade?
And at last, imports and domestic production are on a level playing field. Exported goods are not subject to the FairTax, since they are not consumed
in the U.S.; but imported goods sold in the U.S. are subject to the FairTax because these products are consumed domestically. "
fairtax.org...
i think it's obvious people are not reading my links and kurupt I have come to the conclusion that you are apart of the globalist agenda, LABEL THIS
MAN !.
[edit on 22-12-2006 by ape]
[edit on 22-12-2006 by ape]
[edit on 22-12-2006 by ape]