Americans: would you make fewer purchases if your sales tax tripled?
I was having a discussion with a friend about taxation, and he was arguing for a federal flat sales tax of 23% and no federal income tax. I think that would mean most peope would have a 28–30% tax on most purchases, since local sales tax is often 5–7%. where I live sales tax is currently 9.25%.
I am not looking for a discussion about sales tax vs income tax, but rather just a gut feeling in terms of spending habits if we had a very high sales tax and no federal income tax. Buying a $30k car would be $39k. Buying. $100 dollar dress would be $130. Would it matter you have more money in your pocket because you are not paying federal income tax?