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It sounds wonderful no more incometaxessapping your paycheck.
And it could be, depending on what replaced them.
And how could it do that?
Here are some ways that eliminating income taxes could impact your job search.
Also see10 major benefits to Americans if Trump ends income taxes, according to GOBankingRates president.
More Spending, More Job Creation
Lets start simple.
That alone could drive a significant spike in discretionary spending, DeCrow said.
It would especially benefit theentertainment, hospitality and travel industries.
That, in turn, would likely mean more jobs in these industries.
When demand explodes, so do costs.
Housing prices have gone up exponentially, she said.
Still, a thriving real estate market can create a massive number of jobs.
If no one needs to file individual income tax returns anymore, that would slash demand for accountants.
The country will still need CPAs but largely to work oncorporate tax returns.
There would be too many CPAs and not enough work, so many would likely find new careers.
An Extra Hurdle for Self-Employment
Right now, every American has to file a tax return.
But if only businesses had to file tax returns, it would create a disincentive for self-employment.
Gig workers paid as 1099 contractors may not be immune, either.
They would theoretically still owe FICA taxes to fundSocial Security and Medicare.
That means theyd still have to file a tax return unlike W-2 employees.
Unless the government put that burden on contract workers employers, that is.
Lucas Barcelo, finance and insurance expert atThrivin, pointed out that could make freelance work even more attractive.
Today, many people feel intimidated by tracking their own self-employment income and write-offs.
No self-employment tax worries would alleviate those concerns and allow freedom to work how and where you want.
Impact on State Income Taxes
Today, 43 states charge income taxes.
While they do require that you file astate tax return, these mostly piggyback on your federal tax return.
Knowing that, many (if not all) states might explore ditching income taxes as well.
They could simply raise rates on property taxes and excise taxes.
DeCrow pointed out that such a leveling of the tax playing field might send some transplants moving back home.
If individual income taxes disappeared, companies might rethink which benefits to offer.
And employees may demand different benefits than they do today.
Employees focus on benefits that support their goals, explained Aaron Razon, budgeting and personal finance expert atCouponSnake.
Ultimately, its hard to imagine the federal government eliminating income taxes.
