[Your Nightmare]

Reduce income to avoid the tax you have less to invest or spend.

Why would you reduce your income? You could take that income and invest it and then you can consume your returns to savings tax free.

With an NRST, reduce spending & invest the income, ultimately you have more income to invest and spend.

Reduce spending and invest under a flat tax and ultimately you have more income to invest and spend. Your savings are just not taxed at the time of consumption, like the sales tax. But still, it's the same effect under either.

[ancient_geezer]

You could take that income and invest it and then you can consume your returns to savings tax free.

You missed the point YN, under a Flat Income Tax, to aquire an investment in the first place, a wage earner has to pay tax first after which he might invest some of what is left over. Under an NRST there is no tax on wage, invest tax free or spend taxed are the choices.

Reduce spending and invest under a flat tax and ultimately you have more income to invest and spend.

Initial investment can only come out of after tax wages and earnings under the Flat Income Tax. Under NRST, investment comes out of gross untaxed earnings.

Your savings are just not taxed at the time of consumption, like the sales tax.

You have to pay tax on the earnings that go into the savings first under the Flat Income Tax. Thus there is a substantial increase in the earnings power of a wage dollar when invested under the NRST as that wage dollar is untaxed unless spent on consumption.

But still, it's the same effect under either.

Just not true. The earned dollars going to create the investment are not taxed. Under Flat Income Tax they are.

[phil_will1]

"Why would you reduce your income? You could take that income and invest it and then you can consume your returns to savings tax free."

What proposal are you referring to?

[phil_will1]

"Reduce spending and invest under a flat tax and ultimately you have more income to invest and spend. Your savings are just not taxed at the time of consumption, like the sales tax. But still, it's the same effect under either."

Can you point me to a website that lays out that proposal in a little more detail? That doesn't appear to describe any of the flat tax proposals that I am familiar with.