This should read:
This becomes even more dramatic if one assumes that those in the highest income groups save a significantly higher proportion of their income as those in lower income. categories.
This becomes even more dramatic if one assumes that those in the highest income groups save a significantly higher proportion of their income as those in lower income. categories.
Only if you assume that savings and investment dollars are never spent.
Those who invest or save from personal income, see a net flow of cash from themselves to the businesses they invest in. They can derive no benefit from moneys they are not able to apply to personal consumption. On the other hand, those who receive those investment and savings dollars do spend them on consumption, and provide jobs and commerce from those investment dollars out of which consumption taxes are paid.
A dollar saved or invested by one person does not go to feather some mattress, they are out in the economy increasing everyone elses standard of living. The one place they are not benefiting in the present is the person who makes the investment, the person who takes the risk that the dollars invested or saved with provide for future consumption with the same value as they do in the present. Inflation makes that hope a very difficult thing to realise.
Your bracket calculations are based on a snapshot of time rather than whole life income vs whole life expenditure. Since economic mobility in this society is clearly demonstrable. Those having low income today(predominately the young) are subsidized from parents and society initially expending more than they earn, then they readily gain "income" as they advance in their work careers, during which time they do their pay down of debt, saving and continued consumption expenditure. At the end of work careers, "income" falls again with a commensurate rise of expenditure out of personal investment capital, insurance and savings, such expenditure is taxed under the NRST.
Where in your spreadsheet do your distribution calculations take into account whole life income vs expenditure and how taxes distribute through one's whole productive life. There is the only true measure of distribution of tax burden that means anything. You have yet to provide anything of the sort or even hint that you have done such an analysis. Yet Mastromarco and Jorgensen have looked at the effect of the NRST vs the Income/Payroll tax system in just those terms.
I suggest you have a very long way to go in developement of your methodology and data incorporated into you spreadsheet before your spreadsheet will have much value in the debate going on in this thread.
How do you demark the "poor" in your distribution as opposed to those of merely low personal income but large capital resource from prior investment/savings or inheritence to draw from in their expenditures?