Rick Perry Would Like To Repeal The 16th Amendment
He favors a sales tax (aka the “fair tax”). Think Progress outlines the problem, particularly for those who are living off their life savings.
Imagine that you earn $10,000, and are required to pay 25 percent income tax on those earnings. That means that you are left with $7,500 that you are free to spend or save however you choose. If Perry gets his way, however, Congress will suddenly enact a massive new sales tax after you have already paid income taxes on your earnings. The result is that every single one of your $7,500 will be taxed again when you make a purchase — causing nearly one in three dollars in your savings to be eaten up by sales taxes. Thanks to Rick Perry, you are left with only about $5,000 of your original $10,000 in income.
Admittedly, there are ways to temporarily shield retirement savings from taxation, but few if any Americans will be able to shield their entire savings and still be able to maintain the flexibility they need to live their lives. As a result, Rick Perry’s double tax will eviscerate the savings that millions of American seniors depend upon. Add to this the fact that Perry also believes that Social Security and Medicare are unconstitutional, and it is unclear how he expects any but the wealthiest seniors to pay their medical bills and continue to put food on their tables.