The economics are pretty simple and straightforward.

Just under 48% of all US taxpayers pay a combined 0% Federal income tax and 0% Federal consumption/sales tax. So for half the country their tab for federal government is zippo.

A mandatory $1 annual minimum income OR sales tax would represent a broadly advertised tax hike on nearly half the country.

So what do you do?

European countries embrace the VAT and it's why we roll out tariffs. You can hit everyone with taxes and the best part is the taxes are well disguised.

Additionally, tariffs have a broad populist appeal as companies eat large chunks (GM just ate $1 Billion last quarter) so stockholders will feel pain, too. Did you notice Biden didn't touch Trump's term 1 China tariffs? Tariffs arguably have more support from Union backed Dems than from Republicans. They're here to stay. And half of the country will remain federal income and sales tax free. And we'll get between $400-$500 Billion in fresh new revenues. FWIW June was the first budget surplus month in years.

Yes, we will be poorer. Our trade partners will be poorer. Adjust appropriately.

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