| cleveland124 said: Replies 1. People are saving money typically do so by buying stocks. These are not taxed until they are sold. People usually only sell stocks when they want to buy something. As such, I don't see a big change due to savings. 2. This is why their is a cost of living difference. A janitor in NY may make 75,000 while a janitor in Colorado may make 45,000. As such, yes, I expect a NY janitor making 75,000 to pay more in tax than a Col executive making 75,000. 3. There is the prebate based on family need to even out more dependents. Further more, when did having more kids get a person "ahead" in life. If you can't afford kids, don't have them. It's not the "rich's" responsibility to pay for a person to have kids. |
1. It isn't income until you realize the income. When you realize the income, now you've got capital gains and a fairly high tax rate at that. Under the fair tax, this still wouldn't be taxable. And to say people don't sell their stocks until they want to buy something is being ignorant. Sorry, that just isn't the case. People move their money around for a number of other reasons, sometimes because another stock looks more attractive, sometimes because they want to prevent losses, etc.
2. I think you made a typo and meant a NY janitor making 75,000 should be paying more tax than a col executive making 45,000. But in either case, if the NY Janitor has to spend 74,000 to acquire the same "goods" as the executive that only has to pay 20,000 due to the lower cost of living, then no, it isn't fair that the NY Janitor has to pay more tax.
3. "If you can't afford kids, don't have them." Who decides if you can "afford" kids? The government? I know, people irresponsibly bring kids into the world without being able to send them to an IVY league school. After all, isn't that "affording" a kid? My point: "Affordability" is subjective. Some people can't "afford" to lose their spouse to a heart attack, but that doesn't stop it from happening. My point stands: People with higher expenses shouldn't be forced to cover a larger portion of the tax burden, especially when their income is barely enough to get by.
