I understand that. My point is under the 999 I would be paying 17.3% sales tax.
Kevao, I am willing to pay the 8.3% state and local as we do not have State Income Tax here in Washington State. But I am not willing to have a Federal sales tax added onto that which would make it 17.3%.
But do you not pay federal income tax, payroll taxes, or capital gains taxes?
My top marginal income tax rate will fall from 28% to 9%. My long-term capital gains taxes from 15% to 9% (short term from 28% to 9%). My payroll taxes will disappear entirely!
The prices of all good and services will decline as the corporate tax rate falls from 35% to 9%. And don’t let anyone tell you that the corporate tax isn’t paid for by us consumers in the form of higher prices.
Yes, I’ll now have to pay a new 9% federal sales tax on *new* items, but I still came out *WAAAAAY* ahead of where I am now.
And this is just a transition step to an eventual flat, national sales tax which will replace all other federal taxes.