@csgordon @volkris @stopgopfox
In Canada, they have an absurdly complex system of pass-through tax credits that are routinely defrauded by corporations.
It did raise prices significantly for *everything*. Canadians started cross border shopping with a vengeance that killed several large retailers.
It suppressed consumer demand significantly.
Exacerbated the housing affordability crisis because it applied to even resale goods like houses.
It hurt the services industry a lot.
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The FairTax is absolutely not a VAT, though.
The folks who proposed the idea are very critical of VAT schemes like the on in Canada for exactly the reasons you outline, and they emphasize that FairTax is substantially different from a tax like Canada's.
