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Originally Posted by buzz2  Quote:
Originally Posted by pseudonous I like the idea of a flat tax but I think there might be a problem with just a sales tax. What I am thinking is that the wealthier people invest a larger percentage of their money than poorer people. I would guess the 23% sales tax would not apply to buying stocks as it would make stocks prohibitively expensive. Yet, without a tax on earned income from investments the wealthier people would make a killing and the gap between rich and poor would widen.
Does the "fair tax" address this issue? | What's wrong with wealthy people making more money? The less fortunate people can invest just the same as the wealthier can. Maybe not so much in the beginning, but they can do it. The poorer folks only limit themselves. Just don't eat out as much. Get a cheaper cable tv plan. Get a cheaper cell phone. You just have to learn to cut corners and budget your money a little wiser. Then, use those funds to invest in your future. I see no problem with the rich getting richer. Everyone in this country has the same oportunities to make their lives more comfortable. If I can do it, anyone can. Don't resent the rich for making money. Capitalism is a wonderful thing. |
First off, I don't resent the rich for making money and in a general way I agree with what you say. However, to say "the less fortunate can invest just the
same as the wealthier can." and "Everyone... has the
same opportunities..." is not entirely accurate. There are most certainly differences in opportunities between the rich and the poor. Yet, I don't think we will ever have a perfect system so let me skip to my main point.
While I don't have a problem with the rich getting richer, I do have a problem with some of the ways they can go about it. I'm sure you will agree with me here; for an easy example just consider a drug lord. More on the point, the idea of capitalism is that anyone who creates wealth through their labor or through their ideas should get the benefits of their contribution. In this way, people can get richer without making the poor poorer. On the other hand, if we eliminate the tax on income earned through investments we will have a class of rich people that will become richer solely because they are already rich and not because they created more wealth for the country. This means that for them to become richer (which they would under this circumstance) other people will have to become poorer. This is what I was thinking when I mentioned the gap between the rich and the poor widening.
I think the system this fair tax would set up would be very similar to the old aristocratic system with nobles that were wealthy just because they were nobles. And as for the middle class, while we may make more money in the market as well, without an accompanying increase in available goods and services we would just end up spending more money for the same amount of goods and services.
This is why I asked, "Does the "fair tax" address this issue?" and I hope I have made my concern more clear.