The Flat Tax doesn't tax investment/savings, the NRST does when it is consumed.
You care to show us where investment purchases are deductible from taxable income?
"The Freedom Flat Tax Act of 2003:"
H.R.1783
Title: To amend the Internal Revenue Code of 1986 to provide taxpayers a flat tax alternative to the current income tax system.
You're ignorant. The Flat Tax is a consumption tax. If it was an income tax people would be taxed on their returns to saving. They're not.
Consumption = Income - Investment.
Under the H.R.1783 Flat Tax, Individual wages and retirement distributions are part of taxable income under the both are taxed without deduction funds placed into investment or savings.
Furthermore, "Capital gains, dividends, and interest are only taxed once, and they are taxed at the business level", all of which are returns from investment, not consumption.
http://burgess.house.gov/News/DocumentSingle.aspx?DocumentID=6027
You don't pay sales tax on investment returns with the FairTax? I think you do.
So now a sales tax is not a consumption tax ROTFLM(_|_)!!!!
Sorry, as long as business or individual funds remain in investment, and returns are reinvested per:
Consumption = Income - Investment
There is no tax under an NRST.
H.R.25: Sec 101(a) IN GENERAL- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
NO tax on Investement at all, Only NRST on first time purchases for use or consumption is levied.
Hence NRST Remainder to Invest = $15,663
With the Flat Tax it's your's free and clear.
LOL, after paying taxes on it
"The flat tax concept is easy - there are two components, the individual wage tax and the business tax. Individuals pay a flat rate on their wage and pension income, and business are taxed on their profits minus their wage and pension expenses - this ensures that income is only taxed one time. Capital gains, dividends, and interest are only taxed once, and they are taxed at the business level. Additionally, the flat tax repeals the Alternative Minimum Tax and the marriage penalty."
Hence Flat Tax Remainder to Invest = $13,000
Sorry, your Flat Income Tax taxes Income, including amounts going to capital investment as well as returns on investment.
You care to show us where investment purchases are deductible from taxable income?It doesn't need to because there is no tax when the returns are consumed like there is with NRST. I showed you an example.
Furthermore, "Capital gains, dividends, and interest are only taxed once, and they are taxed at the business level", all of which are returns from investment, not consumption.Right, they are taxed at the business level with the Flat Tax. With a NRST they are taxed at the consumer level when they are consumed. A 20% flat tax on $5,000 of dividends leaves $4,000 in purchasing power. A 20% inclusive NRST on $5,000 leaves $4,000 purchasing power.
NO tax on Investement at all, Only NRST on first time purchases for use or consumption is levied.OK, so the investment is taxed when it converted to consumption under a NRST. It's still taxed. In the end it's the same as the Flat Tax.
So now a sales tax is not a consumption tax ROTFLM(_|_)!!!!I didn't say that. A sales tax is a consumption tax just like the Flat Tax. I'm sorry you can't see it.
Sorry, as long as business or individual funds remain in investment, and returns are reinvested per:So? Once they are converted to consumption they are taxed.
Sorry, your Flat Income Tax taxes Income, including amounts going to capital investment as well as returns on investment.Sorry, the Flat Tax and the NRST are both consumption taxes. To quote the esteemed Dr. Jorgenson on the Flat Tax, VAT, and NRST:
The crucial point is that all three methods for implementing a consumption tax could be based on the same definition of the tax base. This greatly simplifies the tax economist’s task, since the economic impact would be the same for all three approaches.
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