[Polybius]

Actually, it is more accurate to say you are taxed three times. Because the first 9% is a tax on your income. The third 9% is a sales tax, which is a tax on the income that you spend that was already taxed at 9%. The second 9% is a corporate tax, which will be added to the price of the things that I buy when I get to pay the sales tax with the money I was already taxed on — three taxes.

Don't forget that the savings you have accumulated up to now will end up being taxed out the wazoo.

Although a high earner, I have always been a frugal guy and a high saver. I had the top income tax rate rate of 35% last year. So, let's do the arithmetic for $100 earned and saved in December 2010 and then spent in 2014 under the 999 Plan.

($100 earned in 2010) - (35% Income rate) = ($65 left over to put in the bank in 2010)

($65 of saved money) - (9% Federal Sales Tax in 2014) = ($59.15 of left over purchasing power)

TOTAL CUMULATIVE TAX RATE ON THAT MONEY SAVED AND SPENT: 40.85%

Those of us born in the 1950's who were taught the conservative values of hard work, frugality and savings will take it in the shorts as our life savings will be double taxed at an obscene cumulative rate.

Those who were taught to spend like drunken sailors without ever saving a dime don't have to worry about the double taxation on their current savings because they HAVE no savings.

[CharlesWayneCT]

That is my biggest issue with a new fair tax proposal. It is great to tell people you are exchanging their income tax with a sales tax. It’s a wash.

But what about all those people who have savings, all of which were already taxed? Now they have to endure a sales tax as if they re-earned the income.

It is a punishment to people who saved their money. And I don’t know how to avoid it — you’d need to exempt current savings, but how would you track that so people couldn’t cheat?