>>From the way I am understanding the idea of this, my spending would probably increase a bit because I would only have to wait 2 pay periods instead of 3 or 4 to buy that new sofa I saw last month (just an example)<<
Except the $500 sofa would probably now be, after taxes, closer to $800 to $900. And your $2 gas over those weeks was $3.30. And your Latte was $4.25 after taxes instead of $2.74. Of course, if you cut out the Latte and drive less... Then we fall into the point I was trying to make.
Oh, and the sofa is made in China while the people that work at the starbucks, which closed due to the lack of business of people saving to buy a sofa, are now displaced american workers.
People wouold be incented to save up for durable goods which, more and more, are manufactured outside the US.
This conversation has nothing to do with starbucks employees (who, if ever relied on me would have been out of jobs long ago.the stuff is vile) nor products made in China.
I'm already saving to buy the sofa (actually in my case the reality is a washing machine) that is how I do things....
Your point fails to include many of the points of this that have been brought up by others.........the current built in taxes on such a $500 sofa would be reduced, thus reducing the $500 price tag and so the eventual retail price of the sofa, including the NRST, wouldn't be much more, if at all, then it currently is.
By not having all the taxes withheld from my paycheck, and eliminating the hidden taxes on the price of the sofa, I'm going to be able to purchase it quicker than I now can.
I'm starting to see this as a win-win proposal all around.
"Oh, and the sofa is made in China while the people that work at the starbucks, which closed due to the lack of business of people saving to buy a sofa, are now displaced american workers."
Yep, what you forget is that under today's structure the sofa made in china is $500, while the sofa made in the US carries a cost of $650. The disparity is caused by imbedded taxation. Of course, the NRST will tax both products equally so any true difference in price will be a reflection in the actual manufacturing efficiency. What better to drive the free market than the customer having the ability to chose the most efficient provider of products and services?