•      "Specifically, Project 2025’s tax reform plan would: Enact a two-income tax bracket system that would raise taxes by $3,000 for the median family of four—which makes about $110,000 a year—and raise taxes by $950 for the typical single-person household, which makes about $40,000 a year. (see Appendix for state-specific data), provide an average $1.5–2.4 million tax cut for the 45,000 U.S. households making more than $10 million annually from the combination of the “two-bracket” system and cuts to taxes on the wealthy’s investment income, cut the corporate tax rate to 18 percent, which amounts to a $24 billion tax cut for the Fortune 100, replace all individual and corporate income taxes with a consumption tax in the long term. This could take the form of a value-added tax well above 45 percent, which would produce an enormous one-time burst of inflation and raise prices. The shift toward a flat consumption tax while eliminating income taxes would lead to an average $5,900 tax increase for the middle 20 percent of households and an average $2 million tax cut for the top 0.1 percent.." Source: Center for American Progress

•      "Lastly, while some predict that this bill would generate net gains for the American people, far more estimate that it would just reflect a shift of wealth specifically from the lower and middle-income taxpayers to the wealthy taxpayers and corporations. The lower and middle-income taxpayers have borne the brunt of the costs of COVID-19 and the resulting inflationary effects that have followed. Implementing a federal sales tax in place of current federal tax measures would likely exacerbate income inequality in the U.S.." Source: Associate Professor of Accounting at North Carolina State University, Nathan Goldman

•      "In a deal that secured Kevin McCarthy the speakership, House Republicans plan to vote on the FairTax Act of 2023 (H.R. 25), which would replace almost all federal taxes with a 23% national retail sales tax, create a “Family Consumption Allowance,” a type of universal basic income, eliminate the IRS, and create a trigger to eliminate the sales tax if the 16th amendment—which outlines Congress’s authority to levy an income tax—is not repealed in five years…Many of the other purported benefits of the FairTax are overstated or illusory. The amount that the FairTax would reduce complexity in the tax code would be limited if states and localities kept their income taxes. In addition, sales taxes themselves are complex to administer. Replacing the income tax with a consumption tax would encourage saving and investment, but a sales tax would still distort work incentives. We estimate that the FairTax would place a slightly higher tax burden on labor than current law. Lastly, the FairTax would be less progressive than current law and create many winners and losers." Source: Brookings Institution