Quote:
Originally posted by Greedy,Greedy,Greedy
At the same time, Bill Gates will consume a paltry couple of million a year, pay his 35% tax on that, but (absent other taxes) pay only a tiny fraction of either his income or his wealth.
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But why do you want to encourge his spending more? If you give Bill Gates a dollar, would you prefer to see him spend it or save it? If he saves it, and it's invested productively, won't that benefit everyone more than if he puts another flat screen TV in his house?
Besides, someone eventually has to spend it. If gates saves it, his kid might go nuts on the spending of his trust. It's not like the savings disappear, never to be taxed again.
Finally, he probably will spend it. Over one's lifetime, spending=income. Well, let's say income-estate, but still. It's just a timing question.
If all it is is a timing question, why not give incentives for savings over consumption that will enhance the strength of the economy by increasing the flow of money to the most productive uses?
