I’m curious about the potential economic consequences if income tax were completely removed from the current system. My main concern is how this dramatic change might influence market dynamics.
If workers suddenly have more disposable income after removing income tax, wouldn’t this increased purchasing power potentially drive up prices for goods and housing? Specifically, I’m wondering how middle and upper-income groups might react and whether their enhanced financial capacity would create significant market pressure.
Would sellers and property owners take advantage of consumers’ improved financial situations by raising prices? Or would market competition prevent excessive price inflation?
