 Since the FairTax would not tax used goods , the value would be determined by the supply and demand in relation to new goods . The price differential / margins between used and new goods would stay consistent , as the cost and value of used goods are in direct relationship to the cost and value of the new goods . Because the U.S. tax system has a hidden effect on prices , it is expected that moving to the FairTax would decrease production costs from the removal of business taxes and compliance costs , which is predicted to offset a portion of the FairTax effect on prices . 
