[Toddsterpatriot]

Nope - savings aren’t taxed under the FairTax - nor are capital gains. Only consumption that you control.

But if you already have money saved (today), you get taxed on it again (under the FairTax when you spend it).

[AppyPappy]

Yes but YOU decide when you pay the tax, not the government. Under the existing system, the government gets the money before you even see it.

[AppyPappy]

Not only that, a politician once told me that the key to a successful tax policy is to somehow tax the poor. That’s where the money is. That’s also a reason why politicians love “sin” taxes.

[baybabe]

You are only taxed when you spend for consumption - and far and away every expenditure is NOT consumption. To see some of the things that are not, check post #282.

All of those things go to reduce your effective FairTax rate - the rate you actually pay each year (and it’s far, far less than the 23% - or 30% - number used by those who wish to retain the present system).

[baybabe]

... and keep in mind, investing that “money saved” still keeps it saved and provides you with an income stream (which is not taxed - unless spent for taxable consumption).

The opponents of the FairTax invariably pretend that you spend everything you make and that everything you spend it on is taxable. That’s not true. Ask yourself why they might do this.