First, add up the fed and FICA for a pay period. Imagine everything you buy, except used goods, has increased in price by 30%, that is to say, everything. Does the amount you're not paying in fed and FICA cover what you're comfortable buying in that same pay period?
I checked out my son's numbers (he works as a shop floor manager in a start-up). No where near does it. It leaves him with a sizable deficit.
You next point quoted by economist, is how the proponents of an NRST answer that particular concern: the addendums businesses add to prices for income tax expenses will come out of the prices.
For one thing, the litter of economists that were dead wrong is legion acorss history. Next, what he claims is a theory, based on the public-service-minded and compassion of businesses, usually large corporations. This has hardly been a identifying trait of such businesses in the past.
Also, people will expect a 30% increase of the price they are currently paying. So why should a business voluntarilly remove the padding? The aregument there is that they will be forced to do it to remain competetative because other businesses will do it.
What evidence is there that that will happen, when we have a business-as-usual informal agreement among those in most industries to keep a price above a certain amount or at a certain level?
All this is much too iffy to base making such a vast change in the very structure of government, and destroy the last remaining separation of the state governments from the federal government. What if this theorized price reduction doesn't happen? There can be no law made to force it, you know.
Then you would have a majority of the population that will have to petition the government for returns on the sales tax, re-instituting the IRS to execute the laws on return, and a massive move to welfare because they can just barely afford to feed themselves.
I see not place in HR2525, and I've read every word of it, where anything new is tax free. The closest to it that comes is a form you can fill out monthly to beg a partial return of NRST. Which, as mentioned above, requires an IRS agency to enforce the honest filling thereof.
As far as I'm concerned the NRST is complete socialism waiting in the wings to happen. And for a number of reasons beside the small one of price reductions that won't materialze. I've seen to many economic promises and predictions that don't seem to materialize. Why? Because there is a level of interactive detail even in simple economies that is beyond any person's mind to grasp the working thereof.
No sir. The same glowing predictions were made in favor of the income tax back when an income tax was argued against higher tariffs. Look at what we have now. Only, an NRST can be limitlessly abused, whereas an income tax has limits. 