Republicans Want Flat Sales Tax  #republican #tax #viral #foryou #latestnews
Channel: Brain Wired Media
Date: 2023-03-03

It is central to the Republican strategy to reduce taxes and spending that the Internal Revenue Service (IRS) be dismantled and most federal taxes be replaced by a uniform 23% national sales tax.

A new analysis from the Brookings Institute identifies a single issue, though. Notwithstanding Republican claims that the deficit must be decreased, approximately $10 trillion will be added over the next decade due to the "FairTax" proposal, which would equal to a 30% markup on the sticker price of virtually everything, bringing the tax to 23% of the entire price including the tax.

In their Brookings article, William G. Gale and Kyle Pomerleau argue that proponents of the FairTax fail to account for how prices would change for consumers and businesses in a consistent manner, and that, even under favorable assumptions like no tax evasion and no changes in government spending, a much higher tax rate would be needed to match current tax revenues. According to Gale and Pomerleau, this would increase the deficit by almost $10 trillion over a decade.

 #republican #tax #viral #foryou #latestnews