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Financial Planning / Tax Strategies


Subject:  Re: FairTax Date:  9/29/2012  12:41 PM
Author:  JeanDavid Number:  116721 of 129584

Would it be fair for someone who earns a million dollars a year but chooses to live like the poor pay very little tax?

What is fair depends on what your culture is. In some cultures, there is no income tax, but there is a wealth tax. You pay a percentage of your wealth as tax. So if your parents die and you inherit a billion dollars worth of gold bricks, you pay no tax to begin with (whether it is income or not). Now if you have a rich friend who supports your physical needs, that is not taxed either. But you may pay 50 million wealth tax the first year, 47.5 million the second year, and so on, until it is all gone. The tax would drop as your wealth drops. I think this is a custom in Muslim countries, or it was the custom anyway.

And I suppose that system can be gamed just as an income tax system can be, whether it be progressive, flat, or regressive.
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