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Author: mehodgson Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 310986  
Subject: Re: OT: Fair Tax (National Sales Tax) Date: 12/9/2004 4:51 PM
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I think you all are missing a big part of what they intend to do by eliminating income tax. By shifting the any burdon of taxation away from corporate America on to the American people you make some significant changes to the global economy.

Corporate cost of doing business becomes significatly reduced. American goods become cheaper and foreign goods become more expensive relative to each other. American goods become more competitive globally.
This could lead to increased exports and a reduced trade deficit. This could also mean more global companies base themselves in the US to take advantage of our generous no tax policy, potentially creating jobs in America. Potentially a pretty big shot in the arm for America.

Of course many other nations will probably see this as American government illegally subsidizing American businesses and respond with tarrifs on all American products to negate any potential business advantage in exports. Foreign Government and businesses will also have to find a way to compensate for the competitive advatage American companies would now have with respect to goods sold in America.

H.R. 25 is going to create whole lot of economic chaos for more than just the American people if it go through.

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