I agree. It taxes spending instead of income. This makes sense to me. I also think it would promote saving. You, in a sense, decide how much tax you pay by how you spend or save. So those who have more expensive taste, and want to live a higher lifestyle pay more. And those who wish to save their money, pay less. How does this effect investment? And how would it not raise the price of products?
Money currently being goosed around in tax shelters has to go somewhere.
And how would it not raise the price of products?
A sales tax would also eliminate corporate income taxes, the cost of their tax accountants etc.
A corporate income tax is just a hidden national sales tax. This would just put it out in the open.
The base price of a product would decrease and the total price you pay would increase, but this would be offset by the increase in your paycheck.
I believe the proposals also include a sales tax rebate equivalent to basic needs such as food etc.