Originally Posted by maine_coon
I have a very good reason for this.
I am helping the economy by making a lot and spending a lot.
Once my deductions are taken from me and I am taxed on my spending, I'll stop spending and start saving.
Since the US of A mostly populated by Republicrats as you've mentioned, and it is very likely they will absorb the same behavior, it will kill the economy and the country.
Fast and efficient way. No al qaida nukes are needed.
If the population shifted from a earn-and-spend/borrow-and-spend model to a save-and-spend model it would help relieve the awful burden of dept in this country, don't you think? I read somewhere recently that the savings rate for Americans is lowest in history. I do not see how anybody could think that is a long-term benefit. Unfortunately, our current system of taxation rewards spenders and punishes savers. One o fthe great benefits of getting rid of income tax and all the associated laws is to reverse the reward system to encourage ordinary people to acquire wealth.
Rich people, unless they are stupid or incredibly unlucky, are safe from taxes, no matter what the design. If one earns $1M/year even a 90% tax rate leaves a fare bit of change. But when tax rates were extremely high (before Reagan), few people paid the top rate because those folks knew how to avoid exposure to taxes.
Let's say we go to a consumption tax in which 40% of every dollar goes to paying taxes (I think that's the combined tax burden, more or less). If you make a million bucks and spend $50K (I think most people could get by on $50K living expenses) you get taxed 40% of $50K = $20K. Leaving you $930,000 to stuff in your mattress.