Yes, and the growth in Regular IRAs and 401ks is untaxed too. Which brings me to my main point that you still haven’t answered.
If you have put $500,000 into accounts that either are or have been converted and rolled into Roth vehicles, and you were at the highest income tax rate, you have already paid 125k+ in taxes. In fact, you’ve paid much more than that in real terms when you factor in inflation and the opportunity cost of not having the taxed money to invest separately. Someone could have 500k in traditional vehicles AND also have had the 125k+inflation to invest all along.
I think we need tax reform, lower rates, and lower government spending, not a paradigm shift.
Yeah and you haven’t bothered to answer how embedded taxes are avoided when taxed savings are withdrawn and spent in the United States.
The argument is specious. It presumes that only the FairTax will tax after-tax savings through spending when in fact all spending currently is helping American business to recover their tax liabilities through higher prices.
But you have been told that and you ignore it.
So I’ll make it simple for you with a simple yes-or-no question:
Do you believe there are no federal embedded taxes in the prices of retail items today? Yes or No?