imagine car sales the first 2-3 years after it was put in place. everybody who needed a car, would rush out and buy one before the tax kicked in - then, a bust.
Actually, you can expect the exact opposite to happen.
Workers will have 100% of their federal paycheck -- meaning that they will have anywhere from 60 to 100% more money in their paycheck than now. Prices will fall by about 20 to 30% when the plan kicks in because the imbedded costs of the current tax system will no longer be part of the car's price. The net result will be the car is priced the same including the federal tax and the consumer has more money to pay for it.
Changing to this form of taxation will generate more economic activity than you can imagine.
Please, do yourself a favor and read the bill and the research behind it. The bill is HR 25.
Do you guys not realize that the consumer pays for all taxes corporations are responsible to pay today? We currently have an imbedded tax in the price of goods today, we just don't get to see that tax with each purchase. Corporations don't pay taxes, customers do!
Disagree. The offset is that your salary would actually BE your salary. Instead of taking home $33,000 out of a $52,000 salary, you'd be taking him close to $52,000. The offset in wage adjustment allows YOU to control what you buy and when.