You’re already being taxed on savings and capital gains! The Fair Tax will eliminate this taxation and therefore will be able to acquire more wealth via investments and increase savings!
I reiterate, I am not being taxed on savings. That event happened when I earned the money to save. I am only taxed on the earnings generated by the savings. Under the concept of the Fair Tax when I cash in my savings and spend it. Same for capital gains. If I have spent $1 million on land for my ranch and I sell it for $1.2 million, I will pay tax on $200K, and can spend the money with no further consiquences. At 28% capital gain rate my tax would be $56K. Under the Fair tax, when I have spent the $1.2 mil., I will have paid a tax of $276K, not to mention that tax has already been paid on the $1Mil. when it was earned.
The thing I think you fail to grasp is, retirees are not in the mode of acquiring more wealth that would no longer be taxed, but are instead in the mode of spending the wealth that they have acquired and paid tax on. You propose to increase their burden by 23%.
As for your attempt to appeal to my conscience:
“Are you willing to sacrifice the opportunity for future generations not to have their wealth taxed to avoid your perceived double taxation?”
First, double taxation is not a perception with the Fair Tax with regard to accumulated capital, it is a fact.
As for the future generations, especially the idiots that voted this communist into office, I am not prepared to wreck the security of my family to right their ship. I am obligated to not support anything that will put them further into debt on the spending side of the equation and will act accordingly. I would gladly sacrifice social security, which I never expected to collect anyway, and Medicare, which has done nothing but screw up my hospitalization plan that I already had in place (it used to pay virtually all claims after deductible and now pays nothing if Medicare elects to deny their portion).
The solution to their problem (future generations) is: Abolish the income tax, rein the federal government back into the restraints of the Constitution, seat Senators through the respective state legislatures and never let the federal government out of that box again! See Papabear post # 29.