What's to keep this 23% tax from increasing the minute we switch to the national sales tax?
What's to keep this 23% tax from increasing the minute we switch to the national sales tax?
What's to keep the current tax rates from being increased, or deductions reduced or modified to increase the taxes under the current system.
Visibility and the rate effecting all voters is a key factor, if a rate hike affects politician's constituents negatively, in the case of a retail sales tax, staying in office to do that kind of damage becomes dicey.
That's why European tax system like to keep taxes hidden from the view of their citizens, and we use income and employer side wage excises to do the same under the current federal tax system.
Dear skr,
"What's to keep this 23% tax from increasing the minute we switch to the national sales tax?"
The goodness and decency of our politicians.
By the way, if you look at the National Retail SALES Tax from the perspective of a SALES tax, it's actually about a 30% exclusive tax on all new goods and all services. So, you buy a cigar that the business wants a buck for, you pay a buck thirty. Thirty cents goes to Uncle.
Thirty cents is also 23% of the overall cost to you, the consumer, of a buck thirty.
sitetest