If the united states government were only going to levy taxes on the population for one year, you would be right.you said that a consumption tax is a tax on wealth.
as income approaches infinity (wealth), the effective rate of taxation approaches zero.
as income approaches zero, the effective rate of taxation approaches 100% (your prebate is as retarded as your 32% rate of taxation, so spare me).
the "fair" tax is not a tax on wealth, it is a regressive tax on the middle class and poor.
but you work at subway, so of course you don't understand such basic math about the asinine package of goods that you bought.
fool.
But we are taxed every year.
If I can paraphrase your argument, it is this... But savings...
A person with very very very high income cannot spend all they make. True. So you think they escape taxation through savings. False.
Savings are nothing but deferred spending. Eventually those savings will be spent. Be it by the person who earned it, or the person who inheriets it. At that moment, it is taxed.
So sure, that person might not be taxed, but the money he saves in all cases will be. Unless he sets it on fire.
The poor person gets a set amount of money equal to the amount of money that would be consumed by this tax. They get it each month. This number is set at poverty level spending. So a person earning at the poverty level has an effective tax rate of zero.
Buck, suppose the poverty line is 2ok. You will spend all of it, most likely, if that is what you earn.
If you spend all of it on taxable goods (second hand goods, even sold at retail level, are untaxed) you will get every penny that you would have spent on taxes back.
In other words, if you make 20k, you spend 20k. You are also taxed on 20k. You get as a refund the tax on 20k of spending.
So, each month you get, on a reloadable card, direct deposit, or check in mail (all currently used by millions of people getting government money) $383.33
Now, as stated, you aren't taxed on used items (cars, clothes anything used, only new items)
So, if you are poor, buy a used car, shop at second hand stores, and you might only actually be spening 100-200 a month on taxes, and still getting 383.
So how is it a heavy tax on the poor, if they get more out of it than they put in?
Everyone gets the prebate, the poor, the middle class, the super rich. Everyone.
The 23/32 per cent thing isn't really important. But I'll explain that to you.
If you make 100k and your federal income tax bill is 23k? What is your tax rate? 23% or 32%?
If the cost of an item is 100, and 23 of that goes to the fairtax, what percent is that?
You see how it's calculated the same way?
You could say, that since you only brought home 77k, and paid in 23k, that your federal income tax is 32%, couldn't you? Nope.
They are both inclusive taxes, and that's how inclusive taxes are calculated.