Reply #29: This tax is regressive. The less you make the more it hurts you. [View All]

[rzemanfl]

The income tax is progressive, the more you make the more you theoretically pay. It doesn't work out that way because earned income is taxed more than investment income and there are lots of dodges and loopholes. So your frugal ways may help you some day when you can live off your investments. This tax would have the opposite effect from what you posit, the wealthy would have more money to spend on luxury cars, boats and the like and could afford the tax, the poor and middle class couldn't.