[AnthonyMouse]

> A poor person consumes almost 100% of their income; a very poor person consumes more than 100% of their income (by going into debt), an upper-middle class person consumes much less than 100% of their income (they get savings, some investments, and big expenses like student loans and mortgage don't count for sales taxes), and a very wealthy person consumes just a small part of their total income, as most of their spending is essentially buying control of means of production and control of other people, which is not consumption and not affected by sales tax.

This is the common refrain, but it doesn't hold up to scrutiny. Even upper middle class people spend almost all of their income, and what they don't spend goes into tax-deferred retirement accounts. And tuition and student loan and mortgage interest are tax deductible.

Even the super rich don't pay income tax on the money they don't spend because they keep it in offshore tax shelters.

Moreover, income tax can't reach existing wealth (a dollar you already had isn't income), and income tax is collected even when the money is used to pay existing debt, so the working poor are taxed when they earn what they already owe to the credit card company.