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Originally Posted by Slims
Will: I understand that capital gains taxes at a lower rate than the highest income tax brackets. A fair tax would fix that by taxing spending rather than earned income.
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Not necessarily, and I'll tell you why after this:
Quote:
Originally Posted by Slims
also, you are saving your money now, but that won't continue forever...eventually you will want to retire, or you will die and your money will be taxed, again. I appreciate your decision to invest in material goods, but under the fair tax that newspaper would be taxed both when you purchased it and when you sell it, so you would not be able to escape paying taxes on it.
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As I said before, if things continue the way they've been going—decent work, substantial wages, living below my means—I'm going to have a really substantial sum eventually. I'm going to have enough so that I can retire and still leave a lot in my will. For the record, I wasn't disagreeing with the taxes. I want to pay taxes. The "death tax" should be put back in it's pre-2003 place and they should put a moat around it with alligators in it. I was simply saying that the theory that money will always be cycled back eventually, one way or the other, isn't necessarily correct. My uncle (father's oldest brother) has money from my grandfather that came to him from his father before that. And when my uncle passes away, I will be the recipient of the money, which I'll pass on to my progeny. Sure, taxes have chipped away at it a bit and money has been added on to it, but essentially it's still there, intact, nearly 100 years later, and considering I'm only 25 and have a life expectancy of about 85 it will be intact for quite a while longer. That money is cut off and can only be accessed a bit when it passes from one individual to another.