Tax Reform Could Impact Elderly and Poor Through Changes in Goods Prices.
Tax reforms can change prices of goods we buy, affecting how we spend money. Even a flat tax rate would shift prices based on the current tax system. If we switch to a new tax system, like a consumption tax, wage tax, or income tax, prices of certain goods could change. For example, getting rid of tax breaks for housing would make elderly people pay more, and removing double taxation on business investments would make goods cheaper for low-income individuals.