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To: Principled
You already ARE being taxed when you spend money after you save it. The nrst doesn't increase the tax you pay when you purchase things... it just makes the tax visible and apparent on the receipt.

You don't understand. The feds took a 25% cut off the top of my income a portion of which I then saved and now when I spend it I will only pay a 8% state sales tax (no state income tax). Now you want me to pay a 27% national sales tax in addition to the state sales tax. It's taxing money that has already been taxed. Of course future earnings will be exempt from the 25% income tax I currently pay, but that doesn't help me when I spend my already accumulated savings. You're taxing that when it came in and now you will be taxing it going back out again.

125 posted on 11/03/2004 12:27:19 PM PST by FreedomCalls (It's a joke, people!)
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To: FreedomCalls
You don't understand. The feds took a 25% cut off the top of my income a portion of which I then saved and now when I spend it I will only pay a 8% state sales tax (no state income tax).

I appreciate your point of view, but the income left after tax now IS TAXED WHEN YOU SPEND IT beyond the 8% sales tax you see. You just didn't know it because it's hidden in prices. Estimates are that retail prices include 22% federal tax costs.

So you ARE already paying 22% of your after tax money in federal tax when you buy something. The nrst makes the federal tax component visible - it does't raise prices.

It's a replacement tax, not an additional tax.

130 posted on 11/03/2004 12:35:11 PM PST by Principled
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