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