You are going to have to explain that.
It looks like you are saying that the 'effective' tax rate decreases on those with higher incomes because they are not actually spending what they make.
But that is silly for a couple reasons. First, according to that chart, someone who is making 58K per year is saving approximately $12,000 per year and not ever spending it. That's a bit ridiculous, and even if it were the case, people save for retirement, etc. and eventually they do spend the money, or their children do.
Second, your chart is basically saying at the extreme that everybody who make a billion dollars a year will only pay 10.5% in taxes. I don't understand how a flat 23% tax becomes 10.5%. No matter how much money is involved, 23% is still 23%. How many people make 12 billion a year anyways?
Third, I don't think even the more radical supporters of the fair tax have suggested poverty level spending in the US is 8,000 Dollars.
Ok, I am done speculating because the more I look at it the more confused I am. At least have the decency to include a legend of some sort so people can figure out what that chart is. An explanation of what it means and how it helps your case would be better.
-----Added 25/1/2009 at 10 : 46 : 20-----
Quote:
Originally Posted by Derwood
how does the country create a budget when it has no idea how much people will spend each year?? doesn't a recession destroy the government? also, where does the government get the billions in prebate money for the fair tax?
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Um, if the recession is so bad that people are significantly reducing their spending, then a responsible gov. will reduce it's spending as well in order to stay within it's means.
The billions in prebate money come from the billions in taxes collected...remember the prebate is basically a refund.