Maybe it is hard for some to believe business will lower their price. Maybe they never ran a business.
My prices will be adjusted starting January 1st the year the fairtax goes into effect; to reflect my new cost with out production taxes, and lowered compliance cost. I will also aggressively place ads in order to capture my competitors clients. Switching to the fairtax is an opportunity to increase my market share by offering lower priced items then my competitors that are slower to do the same. They better be on the ball or their clients will chose my products instead.
Because I intend on providing the lowest priced items for my customers, you can sure bet that i will have price agreements with upstream material suppliers that have also adjusted their prices. Competition is a reality all business have to contend with.