On the point of where the reductions in costs of goods/services would potentially be coming from. I say potentially because prices in general are a result of a number of factors. The major one in any healthy capitalistic society:
Competition - businesses/corporations/companys that have similiar products/services compete for market share. The more you have, the more you make. If your competitor finds a way to reduce their cost of production, they could essentially lower their prices in hopes of gaining market share! Your reaction is to do the same to keep your market share. Basic business fundementals. Adopt FairTax, take out the income tax liability/expense in all goods/services used to bring your product to market, the entire supply chain...think about any product you buy!! The computer you using right now! You think Dell makes the entire computer from scratch?? You think GM makes that truck from the ground up??!! Talk about a reduction!
At that point the companys(suppliers) could do a number of things:
a) keep their prices the same and make a huge profit - depends on the competitions reaction.(not likely to happen)
b) cut their prices and adjust their profit projections - higher
c) cut their prices and give their employees a raise and keep their same profit projections
I am betting on b or c!!
On the point of who would "lose" from the FairTax plan. Now that you can see where the current tax system inflates the prices on any American product/service, do the poor or elderly realy lose under the FairTax system? The FairTax rebate would untax the poor, as long as people live within their means I think they are getting a royal screwing right now! The tragedy here is that they don't even realize it! Most people are too ignorant or oblivious to the fact that business never have and never will pay income taxes!
As far as losers, you forgot to mention some really important groups.
1) Lifelong politicians and the PAC/special interests that lobby them. Imagine over 50% of your campaign funds - gone!! Guess the politicians may actually have to represent the people in their districts!!
2) Foreign countries. FairTax means fair trade. Prices, without the embedded income tax, will be more competitive in the world market. Free trade with the FairTax will only benefit and attract business and development.
Be informed, be prepared...the FairTax is coming!
