Very wealthy people save and invest. Mostly that is why they have a bigger chunk of Cash. If you will notice as we lowered the taxes of very upper class and even moderately wealthy persons they become more and more Democrat. So unless they really spend massive amounts of their money they end up the winners. It’s just like the poor. The less they pay in taxes and the more they receive from welfare state the less they care about spending. The rich can have their lower taxes and get their government contracts, subsidies and spend government money on their pet projects (especially since they run both parties). The flat tax is clearly self defeating.
I agree with you: the Flat tax is clearly self-defeating!
The FAIRtax, on the other hand, is a winner!