>>15
let's look at this again, i need to swat it DOWN.
i belive you miss the point that the taxed consumption income is OPTIONAL.
it's all down to how much luxuries to buy. the poor can tighten thier belts so thet they're playing the same income tax rate as someone rich will. here's your math:
Imagine:
* I have $2,000,000 dollars a year.
* I need $100,000 to live nicely.
* This leaves me with $1,900,000 dollars to use.
* If I spend it all on goods right now, I can acquire $1,900,000 * (1 - 25% tax) = $1,425,000 worth of goods
* If I invest instead, and it grows by 25% over a number of years, I now have $2,375,000 lying around, just for that year.
* If I now spend that $2,375,000, I can buy $1,781,250 worth of goods. I'm effectively taxed at 6.25%.
this points out that saving and earning interest is a good idea.
necessities atre untaxed by the prebate, so it's up to the individual to decide how much in luxuries they will buy.
meaning: the poor won't be hit harder by the fairtax, it's thier bad spending habits that are hurting them.
next apparently unadressed point. . .