You had to make 130,000 to wind up with that 100,000 in the bank. Under NRST the playing field is leveled for those still trying to create wealth.But it is worth $100,000 of goods and services.
Under NRST you have to make 100,000 to have 100,000 in the bank. You spend it when you want, OR, you save it and never, ever, ever pay any taxes on it.But to get $100,000 worth of goods and services under the FairTax I would have to have/make $130,000. The real value is the same.
Agreed. But you miss one major point. If I am creating wealth I am not spending 100% of my income on goods and services. I am only spending a portion of that income. The portion that I save to create wealth compounds tax free (faster) and the portion that I spend generates the tax revenue at my convenience (over and above the poverty level).
As it is now I am penalized for creating the income that creates wealth and I am penalized for creating wealth from the remainder of that income that I have not spent. Even if I utilize the government's frickin' benevolence at letting me put only a statutory amount of money away tax deferred I still must pay taxes on it when I take it out. And don't give me that "your taxes will be lower when you retire" nonsense. If I am successful in creating wealth I should have a lot of income when I retire.