I still haven't heard a satisfactory explanation of how the value of post-tax savings won't be diminished, when it becomes subject to a tax that REPLACES a tax it already paid.
But how many times have you been pointed to the fair tax web site?
I believe that can be addressed by a moderate phase in/out but yes someone who paid income taxes for 50 years and saved a million dollars and wants to blow his entire wad the year after FairTax comes into fruition would lose economically. He'd also be a fool. The proper economic response to this tax for a person who has enormous savings is to pour the money back into the economy and extract it from the investment whenever it is needed.
It's magic!
Then perhaps you8've missed the point of the author's remarks in the lead-in to the thread. That is that there is a tax component embedded in everythoing you buy so that if the income tax remains, you'll continue right along the paying of these hiddeed, embedded taxes.
The FairTax does away with that and makes any tax payment visible and in addition does not tax investment or other income at all ... zero. In addition, it relieves the obligation of the taxpayer to report to and be beholden to Federal tax authorities since both the income tax and the IRS are eliminated.
I don't know if it is "satisfactory"... but the value of post-tax savings will not be dimished under the nrst taxes any more than today's post-tax savings are diminished by tax costs. That is, purchasing power remains nearly constant.
Questions you may have include "but if the nrst tax adds 30% to prices, why are you saying that there won't be a difference?" The answer is that all prices today include a component dedicated solely to the collection of taxes and tax costs. This component adds appx 28% to prices of goods and 33% to prices of services (depending on industry).
You just don't see it. You don't recognize the $3.29 price for milk is actually $2.57 for costs of production plus 72 cents in tax costs. You don't recognize the $479 recliner would cost $374 without the costs of the income tax system but you have to pay an extra $105 to support our government's tax collections.
When the existing taxes and tax costs are eliminated, prices may fall and must fall in any competitive industry. Then the nrst adds a visible tax of nearly the same amount to prices.
Again, I don't know what "satisfactory" means to you in this context. Maybe if you could be more specific in your question you could get some information you could use.
I'm a pretty bright guy, but a financial idiot........BUT, it's pretty clear to me that this is a matter of "timing".
You and I have already paid those taxes. Our children will not have should the NRST be implemented in the relatively near future. It seems to be just that simple, although I may very well be wrong here.