999 abolishes the payroll tax. This would allow businesses to compete more on price and pass on savings to consumers.
So even with a national sales tax, the total cost of goods could (and likely would) be less.
This, coupled with increased household income generated by lower household income tax rates, would likely up, not tamp down, demand.
BINGO! See post # 94.
The claim has been made time and time again, but can anyone point to any evidence that it has ever happened? It's a little dated, but a 2010 economic paper outlining the benefits of a permanent tax cut noted the following:
"Finally, some have made the argument that the benefits of a corporate rate cut would be passed along to consumers in the form of lower prices for goods and services. It should be noted that this argument is incompatible with the notion that the tax cut will increase stock prices. To the extent that a tax cut resulted in lower consumer prices rather than higher corporate profits, the tax cut would not increase the willingness of investors to buy stock and the predicted stock market boom would not occur. A corporate tax cut is unlikely to lower consumer prices, however. Most economists believe that the benefits of changes in corporate taxes flow to the owners of stocks, bonds, and other capital and not to workers or consumers, a conclusion reflected in papers issued by both the Congressional Budget Office and the Treasury Department. Even if some portion of the benefit did flow to consumers, $900 billion would be a very high price to pay for what could only be a few billion dollars in short-term stimulus."
Oops. It was a 2001 paper, not 2010.
Where did you ever get the idea that it would abolish payroll taxes. Sounds like a 9% payroll tax to me. Do you think that the government is going to shut down an year-round income stream and expect everyone to pony up 9% at tax time?