Proponents believe environmental benefits would result both indirectly and directly from implementation of the FairTax. Former Senator Mike Gravel has called it a "green tax". The concepts of environmental economics come into play with some of the aspects suggested. With the FairTax being levied only on new goods and services, with no federal tax charged on used goods, supporters suggest a systemic incentive to buy used goods is introduced. Consequently, re-use and re-sale of used goods is encouraged. With the subsequent increase of the used-goods market (and with new goods being taxed) it is suspected that people would put more emphasis on maintenance of things for longer use and better resale value, and that they may also shy away from disposable goods. The significant reduction of paperwork for IRS compliance and tax forms is estimated to save about 300,000 trees each year. With the expected increase of business and manufacturing movement to the U.S., more goods consumed domestically will be produced domestically. This may reduce international shipping and consequent environmental impact, as well as production in countries with less stringent pollution controls.
