In 5 years, the PIT would leave you with $165K if it earns 10% and then you pay a 25% PIT. The FT would leave you with $225K at that same 10%.$225 minus 23%(current teaser rate) = $173,000 to spend and if the "basic rate" was 4% you'd pay an additional 30% tax on the remaining 6% earned...Yes there would be a sales tax on some interest earned AND or paid not to mention the new 30% tax on any bank fees.
[ ... and if the "basic rate" was 4% you'd pay an additional 30% tax on the remaining 6% earned...Yes there would be a sales tax on some interest earned AND or paid not to mention the new 30% tax on any bank fees.]
Where do you come up with this nonsense ? There are no taxes on earnings. Period. There is a FairTax on borrowing, not investment earnings.
I think the new 30% tax on services (and rent) are probably the most obvious problems with this boondoggle, at least in terms understandable by the common man.