Exactly. And I notice that those pushing the Fair Tax suddenly go silent when you bring that up.
I’ve asked about this for many years now, and invariably I get some fast talk about how all the goods I purchase will be less expensive since all the built in taxes will be gone.
Then I point out that my post-taxed dollar in savings has $ 1.00 of buying power and that’s exactly the same $ 1.00 in buying power that a freshly earned $ 1.00 will have.
We’re both subject to the new income tax, but the problem is that I already paid the income tax when I earned it (a burden the freshly earned $1.00 doesn’t bear).
Yep, I have never heard a coherent answer that will satisfy me regarding this nagging detail. Usually if I press the issue, Fair Taxers get upset at me and insist that I just don’t understand.
But folks like us do understand. :-)