Hey U-T re: Fair Tax

[jamesd1628]

It is both. You could end up in the same place x years out but the path to get there could be very different.

A simple example over 2 observations:

Case 1: 10, 0 equals an average of 5
Case 2: 5, 5 equals an average of 5

So, while the end result may be essentially the same, the impact of volatility can be disruptive more so than a smooth, steady path.

In any event, I'm not sure that volitility should necessarily be an argument for or against a tax plan, especially on a the federal government level. The easiest answer to volitility would be to budget only to the extent that volitility is not a factor. Given that the US runs significant deficits anyway, it's probably a non-factor.