“42% Think of that. Say you spring for that new TV and drop a thousand your you will have to pay an additional $420.00 more in tax. Economy killer.”
It’d get worse because that’s just the federal tax. Once the states see the feds do this, they will implement (if it doesn’t exist) or raise (if it does) the state sales tax too.
If it is VAT, not a Sales tax it is worse that that.
Vat works like this:
I buy a barrel of oil for $50.00 and am charged 47% = $74.00 and change
I convert the oil into plastic worth $150.00 so I pay 47% on $100. So the total cost
The guy who buys the plastic turns it into vacuum molded TV cases with a total value of $1000.00 + 47%
The next guy installs the guts of the TV which raises the price again.
47% would end up more than doubling the cost of every item