For someone making 50k a year, assuming that prices rose 9 percent, the additional tax would be about 120 bucks over the course of a year, and assuming that you receive a refund of zero every year on your taxes.
If you were able to save and invest more of your money, then you’ll actually come out ahead. So it’s a trade off. Your expenses cost more, but you have more freedom to do what you want with your money.
Anybody who’s not in the 15 percent bracket will come out ahead, assuming that prices rise 9 percent. Now, this is just the first year. If the economy is expanding and wage growth outpaces inflation, then while you will lose money in the first year, you’ll be ahead every other year after. A 1 percent growth in your income over inflation after the first year will pay off everything you lost in year one, and more besides.
That may be true for the average year, but do you want to pay a 9% Federal tax if you buy a house, a car, or other large purchases? Also what is it going to take in Federal employees or contract employees (tax dollars still pay for them) to administer this thing. Doesn’t seem like there will be any savings from the current IRS Behemoth.