Kevin McCarthy Introduces “Fair Tax” Which Would Abolish Federal Income Tax
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So a $54,000 truck means I pay $12,420.00 in tax… Yeah, NO.
Not exactly. Truck manufacturers, no longer having to pay income taxes, will adjust prices accordingly. An equilibrium will be found. You probably bought a truck in the past and paid just as much to the government, but you never thought about it because it was done behind the scenes with complicated IRS compliance b.s.
Sure they will.
By not paying Income Taxes though, the bar for entry is presumably lowered, making room for more competition in that market. Assuming capitalist principles still apply, it's a race to the bottom on prices, and the vendor who provides the best service for the lowest cost wins.