Republicans want to replace federal taxes with a flat sales tax. It'll either add trillions to the national deficit or you'll have to pay a lot more for everything.
out of the Brookings Institute: That"FairTax" proposal, which would amount to a 30% markup on just about everything's sticker price, making the tax 23% of an item's total price including the tax, would actually add nearly $10 trillion to the deficit over the next 10 years — running counter to Republicans' insistence that the deficit should be reduced.
In an email, Pomerleau said that the simplest way to understand the mismatch was in terms of inflation. "This is roughly the problem with the proponents' original estimates. They assumed that when the tax is levied, it is added to the price of goods and services . But they assumed that government spending doesn't rise at the same time, which means a real reduction in spending."
In short, if FairTax wanted to maintain current levels of government revenue and spending, you'd have to pay over 50% more on things like food, electronics, and pretty much anything else you need to buy. That rate could get even higher if there were exemptions for necessities and state and local government taxes, according to Brookings, meaning it'd have to reach 85.5%.
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