[Moneyguy1]

Len:

Certainly did not mean to offend you.

When I said "Hurts" I was careful to say "as much as it does the poor". Perhaps, had I opened my Theasarus, I could have found a more appropriate word.

However, it does not change the facts of the matter. Taken in toto, taxes, federal, state, local income, take a larger portion of the earnings of a relatively poor individual than a relatively well heeled one. If a system could be derived that would balance the effect, that would be a great step forward.

Consider the fact that a true capitalist will invest in anything that will, in his or her opinion, result in a profit. Not all investments have huge profit margins; case in point grocery stores and most retail goods outlets. Since the tax on the wealthy (if one were derived), would be essentially confined to what they spent, I see no problem there. The invested funds have alreadyhad taxes paid on them; consider them an "after tax" contribution like a Roth IRA.

Also, the "wealthy" individual can, for example, construct a home with the amassed funds, and escape the onus of having a mortgage. If all purchases were taxed, this house would have a "value added" component based on the cost of the house. The average individual, purchasing a far more modest abode, would pay the same percentage, but obviously would pay less. Hence, some of the "amassed wealth" that might not reach circulation can now be used for the public good, whatever that might be (road maintenance, hospitals, you name it). AS for the "mortgage", (a necessary evil for the majority), the interest paid is only recoverable to the extent of the individual's tax bracket. For example, a person paying $10 k in interest, in the 35% bracket gets back the equivalent of 35% of the 10k. If the individual had no mortgage, he or she would have $6,500 in additional spendable income. Those with mortgages get screwed not once, not twice, but three times.

In attempting to level out the playing field, one soon discovers that it is not a simple task. However, to leave things the same as they are will only act to further divide and stratify an already divisive society.