out of the Brookings Institute: That"FairTax" proposal, which would amount to a 30% markup on just about everything's sticker price, making the tax 23% of an item's total price including the tax, would actually add nearly $10 trillion to the deficit over the next 10 years — running counter to Republicans' insistence that the deficit should be reduced.
In an email, Pomerleau said that the simplest way to understand the mismatch was in terms of inflation. "This is roughly the problem with the proponents' original estimates. They assumed that when the tax is levied, it is added to the price of goods and services . But they assumed that government spending doesn't rise at the same time, which means a real reduction in spending."
In short, if FairTax wanted to maintain current levels of government revenue and spending, you'd have to pay over 50% more on things like food, electronics, and pretty much anything else you need to buy. That rate could get even higher if there were exemptions for necessities and state and local government taxes, according to Brookings, meaning it'd have to reach 85.5%.
Republican here. The National sales tax has been a fringe idea within the GOP for decades. I’ve always been against it, but nobody asked me. I say, just cut deductions to make the tax code simpler.
don't be fooled. You'll wind up with both.
It's a massive tax break for the wealthy and a tax increase for the poor. It will only accelerate income inequality. And if it means long-term gains are gone on stocks expect to see a massive sell off as people take gains tax free. It will completely crash the markets
Those aren’t Republicans!
You lost your credibility as a fiscal information outlet long ago with your woke, pandering style of neoleft journalism. You're likely spinning this too.
How about we get rid of both taxes
Let's just get rid of taxes and just borrow money for everything
Total garbage analysis
One thing that is for sure though, is we already pay a lot more for everything 🤔
A US sales tax would be great for the rich! What a terrible idea. Who would want to put so much tax burden on the poor? Such evil.
This isn’t even remotely true! Economically
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Source: Reuters - 🏆 2. / 97 Read more »