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[–] 9-11 0 points 3 points (+3|-0) ago 

exactly how would we make up the huge hole created by not taxing most of the rich peoples money? their money is tied up in investments continuously generating money that isnt taxed... they spend modestly here, but fly to europe once a month and spend $100,000.

i'm sure the solution would be something like ditching everyone off of medicare/charging for public schools or something equally bad.

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[–] joethebob 0 points 2 points (+2|-0) ago 

that doesn't matter.

When the basic necessities of life exceed income you may find that it in fact does matter quite a lot.

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[–] zambeezy ago 

You're missing the point. It doens't matter what percentage of their income is made up their food budget; they buy what they need to buy to sustain life. They would end up with more money in their pocket at the end of the month/year with a consumption tax system than with an income tax and sales tax system because they bring home their full paycheck each pay period and only pay taxes on what they need, some of which is reimbursed because they are the "necessities of life".

Percentages don't matter. You can't pay your bills with percentages. Nominal dollars matter. That's what you buy things with.

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[–] InnocentBystander ago 

You're missing the point.

Actually, I think you're the one missing the point.

14% from a guy who only has $100 is a far bigger price to pay than the guy who has a million. One guy has to eat less, or walk to work to pay tax, the other will hardly notice.

A progressive tax allows the poor to keep more, which will lessen their burden on the rest of society. It makes up the shortfall by taxing wealthy, who can afford it, more.

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[–] joethebob ago  (edited ago)

Consumptive tax is not a flat tax system and isn't in the 'Fair and Flat tax plan' so I'm not sure which specific plan you are talking about. A consumptive tax does little to nothing for lower wage people because they are using the vast majority of their money on said consumption.

The entire concept of pay in your wallet is somewhat spurious as you still have to pay the taxes regardless. There is of course some additional room for juggling finances and potential for interest/investment. But realistically, we aren't talking about people with significant disposable income here. Leaving a wholly uncollected tax bill to the end of the year would doubtless increase the delinquency rate.

I'm all for a vastly simpler tax code, but knocking down a building for plans on a paper napkin don't cut it in my book.