So all the money that I have spent a lifetime to save and which was taxed as income, will now be double-taxed as I spend it? You're killing me here. Will you exempt my savings?
Should this happen I predict you will be able to exempt a percentage of accumulated savings in a ESA or Exempted Savings Account.
So all the money that I have spent a lifetime to save and which was taxed as income, will now be double-taxed as I spend it? You were obviously unaware that all the money that you have spent a lifetime to save and which was taxed as income is already being double taxed.
The change is that you would see the tax. Obviously, this will put downward pressure on taxes.
"So all the money that I have spent a lifetime to save and which was taxed as income, will now be double-taxed as I spend it?"
Truth: You are being double taxed every time you spend your hard earned or hard saved dollars.
The hidden taxes we pay and the tax compliance costs we pay every time we purchase a good or service amount to double and triple (or quadruple, as in Death Taxes) taxation.
The NRST has the supreme virtue of removing hidden taxes and tax compliance costs. The price of domestic goods and services will decrease approximately 25% due to the removal of these hidden costs of doing business.
Consider this example: A product that sells for $100.00 in the progressive income tax environment will sell for $75.00 in the NRST environment. When the NRST is added, the final "out the door" price of that good will still be $100.00.
"Well," you ask, "how does that make me financially better off?"
Today, in order to have $100.00 to spend, if a person is in the 15% marginal tax bracket, he/she must earn $117.65. If the taxpayer is in a higher marginal tax bracket, he/she must earn even more to have $100.00 after taxes.
By my calculus, our hypothetical 15% bracket taxpayer is immediately $17.65 richer per $100.00 earned under the NRST. IOW, the first $100.00 earned satisfies whatever $100.00 spending urge the taxpayer has, and he/she is not only comforted with the $100.00 purchase, he/she has an additional $17.65 to save, invest or spend, depending upon his/her propensity to save or spend.
Either way (saving or spending), under the NRST, the economy benefits.
The NRST is a win-win solution to a lot of social and economic problems facing America.
I'd suggest that you visit
http://www.salestax.org ,
http://www.votr.org ,
http://www.fairtax.org or
http://www.cats.org to gain a better understanding of the NRST.