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To: TopQuark
Firstly, it is not true that the number of transactions increases with wealth.

If the tax is based on a percentage of the transaction amount, then the number of transactions is irrelevant.

The average size of transactions increases with wealth. It's the difference between the cost of the Chevy and the cost of the Rolls.

19 posted on 08/14/2004 3:41:48 PM PDT by watchin (Democratic Party - the political wing of the IRS)
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To: watchin
You point is well taken: I indeed stated my mine imprecisely.

That point is still valid, however: the consumption levels of the one with $50B is approximately the same as of a person who has only 1B. Since consumption is not proportional to wealth, the use of it as equity measure is problematic.

57 posted on 08/15/2004 12:24:30 PM PDT by TopQuark
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