Quote:
Originally posted by taxwonk
People who need to live on the bulk of their income suffer more of the incindence of tax under either a flat tax that excludes dividends and capital gains or under a consumption tax.
|
On the former, I see your point (although I don't know if "suffering the incidence" accurately describes everyone paying the same percentage of their income in tax).
On the latter, there is no reason that one could not have a progressive consumption tax. Indeed, using IRAs/Roths/tax-sheltered savings accounts, in combination with progressive tax bracketing should resolve your concerns (assuming sufficient progressivity).
