I wonder what percentage we are talking about - 10%?. Our state and local sales taxes are already 8-9%. I wonder what the net affect on consumer spending would be. More money in people's pockets, but all of a sudden things are 10% more expensive. Would it be a wash? I don't know.
Prices will remain stable even after the additon of the nrst - which some say is 30%, others say 23%.
Here's why: if you spend $100 on an item and $23 of it was tax, what would you say the rate is?
Answers vary. I use both rates depending on context. Would you say the rate is 23/100 or 23/77? There are reasons for both.
Suffice to say that the nrst will add appx 30% to the pretax price so that when paid, the tax will represent 23% of the total - as in the example above.
See the bill here. Enter HR 25 in the search box.
What about the elderly on fixed income, paying no FICA. They get no benefit, only higher prices. hmmm.