[hardtke]

The rate seems to be 23%, and given that this is only a sales tax this would mean the federal government is taxing at maybe 10-15% of GDP. If I remember correctly, federal government expenditures are around 30% of GDP.

[bb88]

So 23% consumption tax? Or would you be talking higher?

I'm not sure 23% would be enough to offset the loss of the federal income tax.

[bb88]

I think if you did a Roth IRA/401k and then retired, you'd be angry because you're effectively paying double taxes on consumption.

Same with money that you already took out of a regular 401k and paid taxes on it.

Same with money that was already taxed for the past 5 years.

Etc.

[hardtke]

23% is what is in the bill as the initial starting rate.

[jleyank]

If that’s across the board and there’s no relief for lower income or retirees it’s going to suck hard. My income tax rate is lower than that…. And I asked about state/local taxes as removing state revenue from source a will replace it with source b. Remove existing taxes, and the national vat will sit on top of state or provincial vats as in Canada and I assume elsewhere.