I really had an idea of wear KTP was going with this, but it still doesn't change my mind. To me, there's a HUGE difference between taxing the lifetime savings of a person who scrimped together a million in savings based on a low salary (through hard work and living below their means) and a person who has a very high income. Maybe it's just me, but KTP's analogy is comparing apples to oranges ... not apples to apples.
The consumption tax goes along the same lines. I wasn't arguing the political merits of that philosophy (I'm not a huge fan of politics). Instead, I was expressing my appreciation for the moral principle it supports ... it would FINALLY be a government policy that gives people an INCENTIVE to save their money instead of spending every dime. I like that philosophy, no matter what you tell me about historical yacht company performance.
Now, another tax policy that doesn't make sense to me is the lack of cost-of-living adjustments. A 500k income in Mississippi is definitely NOT the same thing as a 500k income in NYC ... why pay the same taxes?
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