That’s the Fair Tax.
From what I understand about it:
- You would actually receive your WHOLE paycheck.
- All taxes (including SS) would come out of this 23%.
- Only new purchases would be taxed (used cars would be exempt for example).
- Underground economy would now be taxed (Drugs, Gambling, etc.)
- Corporations would not pay any income tax.
- Low wage earners would receive “rebate” checks from the government to help offset paying the 23%.
Supposedly, the 23% would equal the same amount of revenue that the government currently takes in. Since corporations and business would now be paying WAY less taxes, they would have to (because of competition) lower prices on goods and services which would benefit consumers and begin to offset the 23% increase. Also, this would create a much better “business climate” and jobs that have been sent overseas would start coming back INTO this country.
I dunno if it’d work like they say, but anything’s gotta be better than the IRS right?