It will certainly appear huge when you purchase the $250,000 home and they ask you for $350,000 or more to pay for it.
Hmmm. To buy that $250,000 house today under the income tax I need to earn $333,333.
Under the nrst, I'd need $275,000.
Let's see - currently I'd need $333,000, under the nrst I'd need $275,000.
Looks like the lower rates and broader base make it easier to buy that house under the nrst after all.
It's foolish to pretend that what you pay for today's stuff is paid with pre tax money. It isn't. It's paid with AFTER income tax AFTER payroll tax money.
You are omitting the effect of income/payroll taxes on eanrings. You are omitting the effect of business tax costs on prices.
Why would you do that?