Their theory is that when people pay less in income taxes, they will have more money to spend, thus boosting sales tax collections. Well, that's certainly a th

Their theory is that when people pay less in income taxes, they will have more money to spend, thus boosting sales tax collections. Well, that's certainly a theory. I'd love to see their models. At first blush I don't see how than can work without a 100% sales tax. For a 5% sales tax, If you save $1 in taxes, you buy $.95 worth of goods and pay an additional $.05 in sales tax. That's going to replace only 5% of your tax revenue. You can probably get a money-multiplier effect: some of that $.95 gets paid to local workers, who also buy more stuff, and pay sales taxes. But that's going to have rapidly diminishing returns. I suppose we'll find out.