Consumption Taxes

crsreports.congress.gov

5 points·thoughtstheseus··10 comments

Wow, thats a change!

"In the 118th Congress, H.R. 25 would implement a NST. This proposal would replace the current federal income, payroll, and estate and gift tax system with a 23% tax-inclusive sales tax rate in 2025 (30% tax-exclusive rate), with adjustments to the rate moving forward."

Bookmark for reference.

https://www.congress.gov/bill/118th-congress/house-bill/25

Pretty awesome! Why not tax consumption instead of production? If you tax something, you get less of it, after all.

Hopefully there will be exemptions for things like medical bills, mortgages or rent, and student or federal loan repayments, although if they were added to student loans in lieu of interest I would be okay with that as that would limit the maximum amount of repayment required.

Why? You don't get an exemption on income tax for many of these.

You get insurance taken out of your paycheck pre-tax. You get a tax rebate for the interest you pay on mortgages and student loans.

That's why I would want them to be exempt from any federal VAT.

Unfortunately, no exemption for rent :( And health care is only the insurance payment or if you have an FSA/HSA.

Exactly. Which is why I would want all healthcare expenses VAT free, and rent should be treated the same as mortgages.

I mean then you're at "everything exemption" pretty quickly. Shelter is the biggest cost for many people by far, often 30% or more. If you add all health, car payments, and maybe food, you're at what, 80%?

I'm all for it just saying :)

How about a tax on stock trades and loans.

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