Quote:
Originally Posted by redpoint5
If the wealthy are investing, then it benefits everyone because investments are what build everything. When they finally do spend the money they've invested, it will be taxed. Most wealth doesn't survive more than 1 generation of descendants; evidence that it gets spent.
The sales tax would need to apply to all sales including foreign transactions. I don't know how to accomplish this, but I'm sure there's ways.
Probably the government should develop an official (traceable) distributed ledger currency that all transactions must be made in. People could still trade in gold and other valuable goods, but it at least makes laundering money more difficult.
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This assumes the money is invested in the USA and spent in the USA. 80% of the global economy is outside of the USA.
There is no way that you can collect US sales tax on money that I'm spending in another country. The US just gave up trying to collect income taxes earned abroad and that is way easier than trying to collect sales tax.
The FairTax is a pipedream. Even the supporters basically admit that as they say it would require the repeal of the 16th Amendment.