Georgia for FairTax | Free eBook Sep. 2014 | Page 34

FairTax Overview In sum, Professor Hausman agrees that exchange rates are not likely to counteract the relative price advantage of foreign produced goods. To be fair, there are three ways to pay the extortion of our corporate income tax and Social Security systems. Increasing prices is only the first and most obvious way to pay the piper. But sometimes competition limits the raising of prices. This causes providers to seek lower labor costs. Efficiency takes some jobs, and it should. But then jobs move overseas. Finally, with prices as high as possible and labor costs as low as possible, reducing profits to owners/shareholders is the final means to remain competitive. Domestically, higher prices are a huge burden to the least affluent Americans, including retirees on fixed incomes. Lower labor costs hit our least affluent sector hardest as well. But when it comes to export/import tax imbalances perpetrated by current federal tax policy, the job losses have a corrosive effect throughout eve