To: Final Authority
The incentive to save and not spend is simple... do I want to have my money to pass on to my children, or do I want to give it to the government so that they'll re-build New Orleans?
20 posted on
09/28/2005 1:03:51 PM PDT by
kjam22
To: kjam22
The question about savings was never savings at all, it was the statement made that both income and savings would increase. If everyone saves everything they earn starting tomorrow, then how long would the economy stay afloat?
BTW, there is no incentive to save under the consumption tax like there is with an income tax. Under the income tax, savings are often spent at a time where the individuals tax bracket status is much lower than when the individual is earning. If one spends down an IRA then it is much cheaper tax-wise. Under the proposed consumption tax, spending an IRA is taxed equally. But I suspect, for the generationally envious crowd supporting the fair tax, those who have been know ass X'ers and the like, those who haven't saved for retirement, see the fair tax as an opportunity to finally get even with the greedy and mean Boomer generation, who have done so many evil things, like earning, and owning, and living the American dream.
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