Well there's nothing that can be done about existing savings taxed by income taxes at the old rates. Going forward, any new savings would be taxed at the new 9% income tax rate.
That fact that many will be initially screwed is not sufficient reason not to scrap the old system and replace it with a new system that will be better going forward.
It's like if we suddenly invented a way to prevent cancer but we didn't want to make it available to others because it would be "unfair" to those who already developed cancer.
I would be one of the ones getting initially screwed by the 9-9-9 plan as I have significant savings from income that were taxed at 25-33% over the years. However, I'm willing to suck it up and go with this 9-9-9 plan as it will work out better for me in the long run and will super-charge the U.S. economy while at the same time, forcing our government to get smaller.
Aren't we talking about the consumption portion of the plan? We're talking about the 9% national sales tax that the already-taxed savings would be used for.
However, we already have state and local sales taxes in the range from 6%-9% in most places, right? If so, then the conversion of existing sales taxes to the national consumption tax would mostly cancel out, right?
-PJ
Perhaps — but don’t tell me it eliminates double-taxation (not you personally).