[Hermann the Cherusker]

From a macro-economics stand point, I must disagree with you. Unless the "high end wage earners" are stuffing dollars under their mattress, they like the low-end earners, are consuming every penny they get. All money is spent one way or another. It can be spent at retail, or it can be invested (i.e. passed to some third party) and then spent. One way or another, it is all spent.

Putting money into money accounts, bonds, stocks, REIT's, hedge funds, mutual funds, options, futures contracts, swaps, foreign exchange contracts, etc. is not "consumption" by any stretch of the imagination, since all these items are cash or cash equivalents. Nor do these activities produce spending of themselves.

[Mind-numbed Robot]

Putting money into money accounts, bonds, stocks, REIT's, hedge funds, mutual funds, options, futures contracts, swaps, foreign exchange contracts, etc. is not "consumption" by any stretch of the imagination, since all these items are cash or cash equivalents. Nor do these activities produce spending of themselves.

I am sure Ditto answered this better than I, but as I just said to sitetest, all that money has to eventually go to work somewhere and when it does it gets spent. Even money that is invested in money eventually ends up somewhere else. In addition there are taxes on services that will pick up some of this. All those organizations also have thousands of employees who are spenders and I as I said elsewhere, those earners are often spending for non earners, children, etc., so that also is captured where it is not now.

[ovrtaxt]

And encouraging savings and investment is bad how?

Then there's the effect of attracting foreign investment to America, as it becomes tax free. What will that do to our economy?