Remember the old saying, "What's good for GM is good for America!" Well it should be modified, whats good for Domesitic Corporations is Good for America."
(1) No corporate, payroll, SS and expenditure taxes instantly makes America the best place to incorporate, even for the manufacturing sector that we have consistently losing to China, India, Mexico and the 3rd a world.
(2) These taxes were pushed onto the consumer, therefore prices would immediately fall
(3) How does this affect U.S. competitiveness in foreign trade?
Quote:
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.
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.
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(4) It makes small business more affordable and competitive. No more will the large corporates get extremely unfair tax benefits over the little guys. Now they both pay the same, which is 0%!