What do you think about the national sales tax?

[tenant13]

https://www.politico.com/news/2023/01/29/gop-fair-tax-sales-00079609

I don’t think this is a partisan issue - as the article tries to frame it - it’s just an alternative approach to taxing. From what I can tell it’s pretty much the equivalent of European VAT - not particularly controversial. I think we would benefit with a lot less “outrage” associated with any changes in tax code in US and with a bit more open minded discussion.

 

[OldShooter]

One big advantage of a VAT-type tax is it captures revenue from the underground economy, which is said to be 10-12% of GDP. Capturing the underground economy is also an objective for governments pushing towards a cashless economy. Combined, I think these would benefit us "normal" taxpayers by giving the government additional revenue without increasing our taxes. I haven't followed it in detail but IIRC one of the major objections is that it would be regressive and require some kind of rebate or credit program for low income people.

 

[FiveDriver]

The proposal put forward would favor the High Tax cohort.

The proposed 23% flat tax would allegedly cover a supposedly average Income Tax Bracket, plus the 7% Payroll Tax.
https://www.cnbc.com/2023/01/27/the...-what-to-know-about-the-republican-plan-.html

So the Tax Payer currently in the 22% and higher tax brackets gets a big tax break....and the current 10% or 12% bracket would get clobbered.

Are these onerous taxes to be applied to Food Prices ?? Gas Prices ?? Any of the other basic necessities of living ??

 

[gromit]

My life savings has already been taxed once. While a sales tax might have advantages or not, I'm a no until I know that my currently saved, already taxed, net worth won't be taxed a second time as I spend it.

 

[Gumby]

We already had this discussion once (here https://www.early-retirement.org/forums/f28/perspective-on-income-taxes-116596.html) It was ended, as this one will be, because the forum rule is that we do not discuss legislative proposals until they are reported out of committee.