"Sales taxes are regressive....and hurt those with lesser incomes far more than those higher up the economic scale."
Actually, the exact opposit is expected to happen. Think about it, 100% of paychecks are given to the recipient, the price of goods fall as embedded taxes are removed and a prebate check is sent to EVERYONE. Worst case scenario is that it is break even for the lowest end of the economic scale. It then removes economic barriers to improving one's lot in life.
If someone can't afford the new car with the lower price, then 30% Sales tax (exclusive) they can still buy the used car tax free. Could that person afford the new car under today's tax rate? That same person will see 100% of their paycheck and receive the prebate.
Check out Neal Bortz commentary when you get a chance. I'm hoping he'll get off his butt and get his book published soon. He is supposed to cover this point in great detail.
It is a great plan.
My comments on this article have centered on the fear mongering passed by the author.
Keep reading, my FRiend.......keep reading.
You'll see where I was coming from and where I am at now!!!!