Yes, but for the majority of people who actually earn a living, paying only 9% income tax and no FICA, Medicaid or Capital Gains tax will put so much more back into their pockets they won’t blink when purchasing that home or car. They’ll still be ahead.
So on a new car...let’s be conservative, $30,000...9 percent fed tax adds $2700 to the price ( we pay 7 percent state sales tax, but we’d have to pay that anyway.) I don’t think that’s anything to discount.
On a new house, right now, no sales tax because state sales tax does not apply, but a new house runs around $200,000, add 9 percent sales tax that’s another 18,000 added to closing costs...yikes!