EO fairly good response. My problem is we still end at the same point. There are so many market forces that it is hard to tell exactly where it's going to fall. You point to Airlines as an example for all businesses. Let's talk about Gas companies. They are exceedingly profitable. Demand has stayed strong at all price points and I've heard every reason under the sun for why costs keep improving. They are also a very highly taxed industry. Your telling me that we are going to get a dollar for dollar credit on their decreased costs? In same of the industries where there is strong competition, like airlines maybe, but my guess is it'll vary widely accross different industries, with some giving a 1 to 1 price decrease and others giving a very small cut for the consumer.
I think I would be much more for the tax if it was phased in as discussed above. This gives us time to figure out how businesses/consumers will react to changes. Plus it'll be alot easier going from 7% in sales tax to 15% than 7% to 30%.
The other things are people are saying that some used good demand would increase and some less tourism would occur. These are real dollars being taken from our economy that would have been given to businesses. Again, it may be overall a small portion. But, being in the 50,000-100,000 bracket, my effective tax rate is around 11%. Your saying my net pay should be the same as the company will save this. Your saying that they will pass this savings onto me, keeping consumer items at the same price. This is fine, but if I'm paying a 23% tax that is a real pay decrease for me. As such, I'll be forced into buying used goods to come to the same point I would have been in before. Maybe that's fine as I'm sure I don't pay as much as a "rich" individual, I'm just saying that too many variables, too many different percents. For all we know companies won't give us as much back, the middle class and poor will be pushed into the used markets, and the rich will all save their money leaving no one to pay this sales tax or it could just wash and everyone would save the cost the complaince.
