Thanks for clarifying.
If the internal “revenues” were not significantly changed I think this approach aligns with strengthening the free market. At least it would be a simplification and cost businesses and citizens less in compliance.
Do you know of any analyses of this approach?
Plenty of analysis exists- but you are cautioned that much of the analysis you find will either be biased or viewed from bias. I’m sure you’re already aware of that but with so much at stake for certain groups, it can be extreme. Just look at this election...so read on when you read this will put dog food on grandmas table....
Arthur Laffer is a proponent of this type of system. The closest it has come was in legislation called the “Fair Tax”. You can search that up and find plenty.
The primary objections have always been of the following flavors;
1) it “p”rebates necessity level spending (to avoid regressivity an avoid taxing necessities). The refunds are provided to all irrespective of income levels (indeed, income is no longer important). Detractors think that the bureaucracy to manage this would create too big a government. Proponents say it’s just like what social security administration does already.
And 2) detractors don’t want retailers to become tax collectors... proponents say that retailers already do that now with embedded fed tax in prices and with state and local sales taxes.
And 3) dtractors believe that replacing the federal income tax with a retail sales tax will make prices too high. Proponents say prices will remain about the same in competitive areas.
Enjoy. If you would like some specific info or analyses, holla