Yes, it does. Do you disagree?I do because I know tax rates, income or otherwise, don't dictate interest rates...Do you disagree?...Oh wait I'll bet you think the Fairtax interest is tax free...well get back to me when you go to spend your lower interest gain.
Anyway, the yield will remain nearly constant. After tax, the same amount of money will be available to spend. It's nothing more than a swap for tax paid on investment for a tax paid at retail consumption.Your self contradiction doesn't confirm why the rate would be lower...where's the "swap" from high to lower?...both are taxed.
Sorry, Looey, tax rates DO influence (not dictate) interest rates,
Removing the increased in interest rates caused by the income tax will lower tax rates a couple of points.
Tax will be paid either on the investment income (interest) under an income tax or on taxable goods under the nrst. Not both. Geezus.
That's how it could be viewed as a swap.