FairTax Fact of the day 07-Dec-2007

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December 7, 2007 06:28 PM    View printable version     Link to this comment   
Member Since:
March 29, 2007

 

What about border issues?

It is unlikely that “shopping across the border” in Canada or Mexico will result in any cost savings to the consumer. Remember, the FairTax is revenue neutral and therefore price neutral. This means the relative cost of retail goods and services after the FairTax remains very close to the same levels found in the marketplace today. With regard to interstate competition, since all states have the same federal sales tax rate, the federal sales tax is not an incentive to cross state lines to avoid the tax.




Rayj
First you're born, you pay taxes, you die.
Then your next of kin has to pay more taxes
on your funeral! How fair is that?

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