Wealth Disparity

[dot com]

The wealthy often manage to shield much of their income from taxes. And they tend to spend a lower percentage of it than others do, thereby limiting sales tax revenue.

Well it's a trickle not a flood.

 

[PhDeac]

http://news.yahoo.com/us-wealth-gap-putting-squeeze-state-revenue-042337218--finance.html

"The widening gap between the wealthiest Americans and everyone else has been matched by a slowdown in state tax revenue, according to a report being released Monday by Standard & Poor's.

Even as income for the affluent has accelerated, it's barely kept pace with inflation for most other people. That trend can mean a double-whammy for states: The wealthy often manage to shield much of their income from taxes. And they tend to spend a lower percentage of it than others do, thereby limiting sales tax revenue."

Which is the whole point of the "Fair Tax."

 

[ChrisL68]

Which is the whole point of the "Fair Tax."

The Fair Tax is a consumption tax. The impact would be much larger.

 

[PhDeac]

Which is why I mentioned it. Sales tax is a type of consumption tax.

 

[ChrisL68]

Gotcha