To remain consistent with the original conditions the original rate was established under.We are discussing the NRST rate. We're discussing how much of the prices we pay today are "embedded" taxes. Why are you bringing up the NRST rate?
The NRST of HR25 was based on pre Bush tax law and economic conditions when calculations showed that the sales tax would have to be in the area of 23% and repeal of the tax law then in place would have and effect on the economy of a magnitude commensurate with that tax law.
We are discussing the NRST rate. We're discussing how much of the prices we pay today are "embedded" taxes.
The rate is related to the taxes law being replaced for the economic conditions in effect at the time of determination. 23% pre Bush tax cuts and pre-Bush economy. That is why one sticks with a consistent set of conditions by selecting 2000 as a base year, prior to the implementation of the Bush tax cuts and when the HR25 NRST rate was established.
why are you bring up the rate?
With tax cuts the embedded tax related factors change, the proposed NRST rate changes as well. That is why a new study is underway now.