I see. Thank you for the reply.
THe problem I have with your position is that it presupposes that federal taxes and tax costs are paid with magic money.
If the farmer pays his workers' payroll taxes in wages, where does the money to pay those payroll taxes come from SGlob?
If the farmer pays his ER portion of FICA, where does that money come from?
If the farmer pays any income taxes, where does that money come from?
Of course, the money to pay taxes comes from sales revenues - ie prices to the next producer....say a miller.
So the miller must pay sufficiently high prices to cover the aforementioned costs (among others) of the farmer.
ANd of course when the miller sells to the bakery, he'll have to sell for enough to cover his costs - which include the tax costs of the farmer and the miller.
...
And so on until the retail consumer pays the taxes and tax costs of all producers in the chain of production.
Hence prices today already include federal taxes and tax costs.
The nrst eliminates those existing taxes and replaces them - it doesn't add to them.
The extent to which federal taxes reduce purchasing power of post-tax money will remain nearly constant. Folks who have saved post-tax will have the same purchasing power they expected when they saved.
However, those of us who save pretax (do you know the proportion of pretax to posttax savings/investments?) will have a nice increase in purchasing power over what we expected - as the savings will never be income taxed.
I said where - by the fact that I was expecting to have to pay income taxes on it but no longer have to. So the amount that I was going to have to send to Uncle Sam will stay in my bank account. THat's where the increase comes from.