I’m curious if there is any thought given to only taxing durable goods and not food. I think more people would support the sales tax if it didn’t include food. That’s how it’s done in my locality with our local sales taxes. An increase of 9cents on the dollar would probably not sit well in bigger cities where local & state sales tax is already over 8%. I understand how with the other taxes eliminated it would actually transfer to a SAVINGS, but I’m curious as to how we can push this plan with people who are already being taxed mercilessly on a variety of things they purchase already (take gasoline for instance).
Please do feel free to direct me to a website, or the like - I know I need to increase my understanding of this plan.
Sales tax works best with no exemptions at all. If you exempt food and gas, what happens is that this distorts the market in favor of both. Demand for food and gas is inelastic. Decreasing the price won’t have the concamitant increase in demand. Producers will shift to food and gas until there is an oversupply.