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Old 05-17-2019, 12:26 AM   #59 (permalink)
JSH
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Quote:
Originally Posted by redpoint5 View Post
People tend to spend most of their money regardless of income. The 50% saver is an exception, not the rule, and even that saved money will get spent at some point.
I must have an odd circle of friends then. I personally know 4 other couples that are going the FIRE route (Financially Independent / Retire Early).

As for people spending everything they make - "The Millionaire Next Door" is an older but excellent book on the subject.



Quote:
Originally Posted by roosterk0031 View Post
So if replacing all taxes would take 40-50% sales tax we are already paying it, 30% out in the open would be a tax cut? Or it would be the same $$ just out in the open. I'd like it to be out in the open.
I'm not following your comment about it being "out in the open"

Yes, a 30% sales tax would be a large cut in federal revenue (taxing the items envisioned by the authors of the "FairTax") With that you would likely be able to cover "mandatory" spending. (Social Security, Medicare, Medicaid, National Debt) Mandatory spending is roughly 70% of the budget.

Discretionary spending (the stuff that needs to be reauthorized every year) is about 30%. That is about equally split between domestic spending and the military budget.

A national sales tax (as envisioned by the authors of the FairTax) shifts the tax burden from those making over $200K to those making less than $200K.

Last edited by JSH; 05-17-2019 at 12:35 AM..
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