That's what the prebate would attempt to rectify -- although if these people should make sell property or stock they would keep all the capital gain.
But you make a good point.
it is their children and grandchildren who will suddenly have 25% more take-home money. Does this sound Fair?
What is fair now in our tax code? But it's not a matter of fair. It's a matter of bestest for the mostest.
Won't throwing a bunch of new money without any increase in productivity just create inflation? Isn't it almost the definition of inflation?
You're not creating new money i.e. nothing is being printed that would otherwise be printed.
The prebate is going to everyone, it does not solve the relative unequal treatment of "old" accumulated wealth, as compared with "new" earned wealth.
I'll change my statement to include prebates to make this clear.
Not true for retirees, persons on a fixed (eg pension) income, or anyone with accumulated wealth. Those people will have exactly the same amount they have now plus a prebate, it is their children and grandchildren who will suddenly have 25% more take-home money plus the same prebate. Does this sound Fair?
You're not creating new money i.e. nothing is being printed that would otherwise be printed. You are putting 25% more take-home pay allegedly in the hands of every wage earner in America, instead of giving it to the government. I would imagine money supply will have to be increased.