A National Sales Tax would mean that the Government would be less intrusive in People's lives and in Businesses.
A National Sales Tax would put more pressures on Businesses' profit margins as its inputs are taxed and its customers have to pay a higher price for their output.
Low wage retailers would benefit by lower structural labor costs.
The effect on businesses that consume significant input is more ambiguous. A company that consumes a service would pay a tax if its provided by an independent entity, but if they hire the persons in-house, the company can avoid a sales tax. This would provide businesses that in-source services a competitive price advantage over those who consume third-party services.
For an enterprise that consumes goods as inputs, the structural cost of those inputs increases, possibly exponentially for value-added goods as inputs. This may put domestic manufacturing or value-add enterprises at a competitive disadvantage.
Small domestic manufacturing business concerns would be competing on an even playing field with each other, but at a significant disadvantge to foreign manufacturers and those who import foreign goods. Importers and their customers are paying a sales tax on a finished product, versus each input and the finished product being subject to the sales tax.
The current income dispartities in this nation are primarily caused by capital gains being taxed less than wages and profit. A national sales tax does nothing to resolve this disparity unless a sales tax is applied to each acquisition and disposition of stock shares, bonds, and assets.
The Fair Tax Act provides for a significantly less intrusive Federal Government, but, would lead to a re-balancing of American economies - personal, business, and Government.
Such a proposal should be through an expansive and diverse set of economic modeling to measure outcomes.
A monetary impact would be a decrease in the velocity of money through the economy. A higher velocity of money would produce more economic activity with a smaller money supply.
Taxation is a no-goldilocks-solution problem Any proposal that initiates discussion about changing the tax regime in the United States is a productive excercise.
Wages and Profits need to be taxed less; Capital Gains need to be taxed more. Also, business taxes should be applied based upon the business activity in the U.S. versus based upon where the business is domiciled.
To bring more supply chains back to Amercia, we need a tax regime that decreases input costs - goods, services, labor - rather than increasing it.
I'm of the general belief that consumption tax regimes are regressive.