 Since the FairTax would not tax used goods , some critics have argued that this would create a differential between the price of new and used goods , which may take years to equalize . Such a differential would certainly influence the sale of new goods like vehicles and homes . Similarly , some supporters have claimed that this would create an incentive to buy used goods , creating environmental benefits of re @-@ use and re @-@ sale . Conversely , it is argued that like the income tax system that contains embedded tax cost ( see Theories of retail pricing ) , used goods would contain the embedded FairTax cost . While the FairTax would not be applied to the retail sales of used goods , the inherent value of a used good includes the taxes paid when the good was sold at retail . The value is determined by the supply and demand in relation to new goods . The price differential / margins between used and new goods should stay consistent , as the cost and value of used goods are in direct relationship to the cost and value of the new goods . 
