"I'm still waiting for someone to give me a reasonable explanation of how prices can stay the same with the 30% sales tax while we are taking home what use to be withheld from our paychecks and getting $500 a month from the government. They don't call it the FairytaleTax for nothing."
How about the matching contributions made by our employers, yet not reflected anywhere on a paycheck. Add to that the reduction in compliance cost throughout an entire supply chain and intuitively a reduction would occur in the cost to produce a product or provide a service.
How about the matching contributions made by our employers, yet not reflected anywhere on a paycheck. Add to that the reduction in compliance cost throughout an entire supply chain and intuitively a reduction would occur in the cost to produce a product or provide a service.You assume the employer's portion of payroll taxes has caused prices to go up by an equal amount, you can't make that assumption (see post #1133). But even if they were, you are only talking about ~$300 billion, which is a very small percentage of retail prices.
I think that's going to be offset by the taxes you will be paying where you never paid them before. Services, for example. Your lawyer, accountant, plumber, barber, the kid who cuts your lawn, and, the biggie, healthcare.
I predict that very soon after the NRST is implementd, we'll switch to a cashless society. We'll have to. The fraud in the service industry will be outrageous. Also, bartering will make a comeback with that 30% incentive (Fix my sink and I'll write your Will for you -- Uncle Sam loses twice).
And the NRST will, of couse, have to increase to compensate.