Cause it to go up.What do you think all of that new money is going to do to the financial markets?
Actually, I think paying "up front" is a better way. I think one reason why people don't understand how much they pay in taxes is because they never see it. Their employers just take it out. If every American had to write a check every week or month for their tax bill, I think there would be a revolt not unlike the Revolution. I don't think people realize how much they pay because they don't write the check for it.Do you realize that this would require that you pay a tax on every transaction at the point of sale? When I lived in Tennessee, we had an 8 3/4% sales tax. Now, imagine having an even higher percentage added to this. This wouldn't be deducted from your paycheck weekly/bi-weekly/monthly, it would be taken from you every single time you buy a good or service. That means you are paying more upfront.
Having said that, if we had a national sales tax, you would be paying more at the register, but you would be taking home more in your check. So everyone would get an instant raise.