FWIW, if investing is exempt from the tax then there are huge loopholes.
You thinking inside the income tax box again. Income feeds investment and consumption. However it is consumption that all dollars must pass through to keep the economic engine running in that big financial/production loop.
- It is fairer to tax people on what they extract from the economy, as roughly measured by their consumption, than to tax them on what they produce for the economy, as roughly measured by their income.
Invest all you will, you cannot eat investment, sleep on it, keep the rain off your head ... Investment provides the capital that creates all the things the foregoing require and are obtained through consumption spending.
The NRST is a consumption tax, investing is not taxed and not supposed to be under a consumption tax. Investing increases the means of production and productivity fostering economic growth.
That is the whole idea, as soon as you start taxing the production side of the ledger you are right back with hidden and counter productive taxes.
Not taxing investment is not a "loophole" it is simply not in the tax base to begin with.
Investment feeds the infrastructure of production which feeds into retail sales which spins the economic wheel.
Meanwhile, all the investment in the world does not benefit you until you take a gain or receive a return for your personal consumption spending. Consumption, which is taxed.