Would local taxes be the same everywhere? State taxes?
It just changes the way taxes are perceived, right now my family pays no taxes, because after filing we get some of our witholdings back. (We try to break even) this gives us a real world solution to budgeting.
If an income tax deincentivizes earning, doesn't a sales tax equally (perhaps more so because of the "invisible" nature of federal income withholding) deincentivize spending?
If so, what would be the affect economically?