Quote:
Originally Posted by Bill Keegan
Complaints like this drive me nuts. A "poor" person who spends $1,000 is NOT injecting more into the economy than a "rich" person who spends $10,000. I don't care what percentage of their incomes those $ figures represent. Sales tax is assessed on the price of the item, not the income of the buyer. Rich people buy more than poor people do. Rich people buy all the same things poor people buy, they just buy a lot more of it, as well as (often) higher priced versions. "Rich" people will always generate more sales tax revenue than poor people will. Proportionality means nothing in this case.
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You are incorrect.
I wasn't complaining and I wasn't commenting on INDIVIDUALS like for like.
I was commenting on the aggregate of all poor/middle class and their effect on the economy as oppossed to ALL of the rich combined. Yes, a $100million painting will generate more sales tax than a $200 TV. I wasn't talking about sales tax at all, I was talking about economic activity.
The combined consumer and economic activity of 295,000,000 people is a LOT more than of some 5,000,000 rich. Plain and simple. They buy a lot more food, a lot more shoes, a lot more chairs, a lot more cars. As a total. All of that economic activity generates more economic activity, jobs in manufacturing, transportation, sales etc. The million dollar painting employed the artist, an appraiser, maybe a few hours of auction house time and that's about it.
Rich people don't "buy a lot more of it". A guy worth $10mil doesn't buy a thousand times more food than someone worth $10,000. Or a thousand times more cars, or a thousand times more phones or spoons or socks. Yes he/she will buy more but not proportionally. It's a case of basic math, not politics or mindset.
It's not always about taxes.