Is a 10% federal sales tax going to discourage a wealthy person from buying a yacht? Perhaps, but I would argue that freeing him/her up from all the other taxes would put them in a position to spend.
how much more will they really spend? I mean, we're talking about 1/4 of the nation spending 15 or 15% LESS - FROM NOW ON.
That's huge. Are the wealthy - who already have a shitload of money in stocks and properties - going to suddenly cover their arms with bling and purchase 15 new BMWs, because their annual income just went from 2.2 million to 2.8 million? Probably not.
but you can know with certainty that the bottom quarter of americans - who already put 100% of their income right back into the GDP - will stop doing so.
if it was beneficial, the rich would have gotten their way by now on it. They know what happens when 80 million Joe SixPacks only have $75 to spend at walmart each week instead of $90.