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Originally Posted by rkzenrage
Nope, most of the wealthy's money sits in savings, investments and in intangibles and is not spent at all... I do not agree and most who know, would find that to be part of the current problem.
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LOL ok rkzenrage that may be true but I guess I didn't say what I meant quite right either. What I meant, and what the national sales tax boils down to is that even if most of a wealthy person's wealth sits in the bank or some other investment house, they will still spend more than your average person. I will agree that there are
some wealthy people that got that way by being frugal, but for the majority, they like to spend their money just as much as the next guy. Whether it be on cars, houses, fine dining, boats, etc... And even when they have money in savings, say under the current system, all that would be taxable would be interest, not the money they've accumulated. And when their money is in investments under the current system, they only get taxed on that when they sell the investments (capital gians). So even if most of their money is in savings or investments, the tax result from those holdings would largely remain unchanged.
I hope that clarified the point I tried to make on that one a little bit.