Yeah and you haven’t bothered to answer how embedded taxes are avoided when taxed savings are withdrawn and spent in the United States.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?
I did address it and I do agree there is an embedded tax and recognize that the fairtax will remove that and that prices will remain largely the same. My argument still stands despite that. Let me repeat it for you again.
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
***THIS MEANS THAT THE GOVERNMENT HAS CONFISCATED 25-33% of my money from the past -— more when you count the inflation and opportunity costs lost. This confiscation WOULD NOT have taken place in other vehicles such as traditional IRAs and 401ks. People made choices to pay taxes at an earlier time by using a ROTH with a guarantee from the government that they would not pay federal taxes later.