Who bears the burden of a national retail sales tax? Q.Who bears the burden of a national retail sales tax? A.A revenue-neutral national retail sales tax would be more regressive than the income tax it replaces. Read more about Who bears the burden of a national retail sales tax?
What would the tax rate be under a national retail sales tax? Q.What would the tax rate be under a national retail sales tax? A.It depends on assumptions about the breadth of the tax base, tax evasion and avoidance, and the effects on economic growth. It also depends on how the tax rate is measured. Estimates for a tax that would replace revenues from the current federal tax system range from 31 percent to 65 percent. However, these estimates are dated, since revenue levels have recently changed, in part due to the 2017 Tax Cuts and Jobs Act. Read more about What would the tax rate be under a national retail sales tax?
What would be the effect of a national retail sales tax on economic growth? Q.What would be the effect of a national retail sales tax on economic growth? A.The switch from an income tax to a consumption-based tax would probably make a positive difference, but it is far from certain. Read more about What would be the effect of a national retail sales tax on economic growth?
