I am sure Ditto will or has answered this better than I can but, as he said, any invested money is quickly spent. You know when you put money in a bank, in an insurance policy, or in any investment, that the institution you gave your money to can't just sit on it and still pay you for the privilege. They must put it to work. They lend it or invest it themselves in some money making opportunity. Those who take the money must themselves do something with it and all along the way it is getting spent. A large portion of that enters the tax base of the Fair Tax.
Dear Mind-numbed Robot,
Well, what you say is partly true, to a limited degree, but kind of irrelevant to the point - which is that the taxes on the very wealthy will mostly decline.
Most of these folks will invest in businesses that pay wages, buy services, and purchase products. All these activities will be exempt from the NRST. Certainly, eventually, employees get their share, and will spend and be taxed, but as has been pointed out so many times before, all we're doing is moving the tollbooth where we're collecting the taxes.
Bottom line - the very rich make out very well with this.
Not that I'm complaining, as I wouldn't object to being in that category sooner or later, myself.
;-)
sitetest