Commentary
Rep. Earl Carter (R-Ga.) introduced a new tax proposal called the “fair tax.” Predictably, Democrats politicized the proposal. Sen. Catherine Masto (D-Nev.), for example, posted a typically uninformed statement on Twitter:
“On average, Nevadans are paying nearly $6 for a carton of eggs. If House Republicans passed their 30 percent national sales tax proposal, our families would have to pay over $7.80 per dozen. That’s ridiculous. We need to lower costs, not raise them.”
The first thing you need to know about Ms. Masto’s logic is that it is woefully flawed. She applied to the issue accounting principles instead of the principles of economics. This misuse of logic can cause you to make bad decisions. Her statement ignores the fact that the price of eggs isn’t fixed. It’s derived from supply and demand in the market. It’s also derived from regulations that are passed that affect raising chickens and getting their eggs to market—and a massive outbreak of avian flu. I wouldn’t rely on Senator Masto for financial or economic advice….