But, what exactly is going to be different? You still have to measure income...does it include Social Security? Does it include all of the money you got selling stock? What about the amount you paid for it? What about selling your home because you had to move for a transfer? What if you spent all your income on an accident you caused?
>> You still have to measure income
Of course.
>> does it include Social Security?
Yes.
>> Does it include all of the money you got selling stock? What about the amount you paid for it?
Recovering what you paid for an asset — also called its “basis” — is not income. Profit (sales price minus basis) — from sale of a home, a share of stock, whatever — is taxed at the flat rate. Just as it is now, by the way.
>> What about selling your home because you had to move for a transfer?
Sucks to be you. I don’t mean to be flippant or harsh, but as conservatives, do we really expect government to shield us from every eventuality in life, with social engineering via the tax policy? That kind of thinking is what landed us where we are now — in a real complicated mess!
But you only pay tax on the sale of your home if you MAKE money on the home.
Now consider a forced move in light of National Sales Tax. What if the only way you can afford the move is to sell all your stuff (at a loss) and repurchase it after the move — with a 23% sales tax tacked on? Ouch.
>> What if you spent all your income on an accident you caused?
What if you are suddenly unable to work under a National Sales Tax regime? Your income goes to zero, but there’s no tax break on that. However, your need to buy your kids toys and school supplies, your wife, clothes, &etc. My point is, with either plan you can set up “what if” straw men that have a tough row to hoe.