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To: PENANCE
Hi PENANCE,
People all consume but some consume high dollar goods and some consume low cost items.
Say, for example, I only buy Ramen noodles but you like Lobster stuffed with Caviar. We both pay 9% consumption tax but I only pay $0.09 on my $1 Ramen and you pay $4.50 on your fine dinning. Same rate but different tax liability on just one meal.
I buy a $1500 bass boat, you buy a $1,500,000 yacht with a 9% tax; Same tax rate but different actual payments. The amount of tax you pay depends on your voluntary willingness to buy/own high dollar goods. If you are rich but thrifty you pay the same as a poor person and your net worth grows.
Spending is taxed, saving is not. I hope this makes sense.
19 posted on 10/31/2011 7:16:54 PM PDT by outofsalt ("If History teaches us anything it's that history rarely teaches us anything")
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To: outofsalt
You equate caviar-stuffed lobster and ramen noodles. I've had both (minus the caviar). They are not the same.

If I have $50, and you have $5, and together we go to Wendy's to each buy the same burger costing $4.50 with a 20% sales tax; who gets to eat, and who doesn't?

Or, to put it in terms of income: if I make $150k, and you make $30k, and we each buy the same $20k car with a 20% sales tax; who pays a greater percentage of their income (wealth) as tax?

23 posted on 10/31/2011 8:55:21 PM PDT by PENANCE
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