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That would be pretty wild.
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The way things are moving really does feel different. I could see this happening.
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I think the bond market will have something to say about this.
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Indeed
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If there's a credible replacement plan for the revenue, then it shouldn't matter. If that includes removing capital gains taxes, then there should be more bond demand.
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Markets don't like uncertainty. Hard to imagine they will view anything as a credible replacement plan until proven to be credible. A mass sell off in the US bond market will derail those plans very quickly whether credible or not.
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That's fair and very plausible. Of course, I think they should just default on the national debt, so it's not much of a reason not to do something in my book.
The issue is, where will the money come from to pay for all the spending in place and new spending Trump has planned.
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There was a post earlier today (#891768) about that.
The basic idea is to replace most of the current taxes with a 23% sales tax, with a household rebate to offset how regressive that would be.
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Wild time to be alive. A lot of people are hurting financially. We've been gas lit for 5 years about how bad it is.
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a kid can dream, eh
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Can and will
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No way in hell this ever happens
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I hope you're wrong. There wasn't always an IRS and there doesn't need to be one, now.
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Didn't they make income tax an ammendment? I feel like we would just end up with a high consumption tax, and a new irs in the future
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Yes, the amendment authorizes income taxation, but does not require it. I think they are already allowed to levy excise taxes.
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Right but if they are allowed to do it, then what's stopping them from doing it after they create the consumption tax? Maybe I'm jaded, but when the government does anything, I'm looking for the worst possible outcome.
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What would stop them is that people hate the income tax and reimplementing it would get politicians booted out of Congress immediately.
It would certainly be ideal to repeal the amendment, which would be more politically feasible if there were no current income tax.
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My only real counter argument is the current state of affairs we find ourselves in today. Death by inches. I doubt they'd just open the flood gates, but certainly a tragedy like covid or 911 would be a good enough reason for a "temporary" small income tax... just to get us out of this mess...
Although I hadn't thought about the fact that the only way to feasibly repeal the ammendment is to remove the tax first.
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At that point repeal would just be popular cheap talk.