[barrkel]

Wealthy people don't consume in the way you understand consumption. Wealth, at the higher levels, is almost synonymous with power. It's what amplifies your agency. By owning large organizations, investing in new developments, starting new organizations, controlling organizational output (think media companies in particular), wealth is converted into control over people and to a certain extent, governments.

Wealth gets "consumed" by bad investments. Those "bad" investments might even be considered as expenditure, almost as consumption, by the wealthy, e.g. subsidizing a newspaper - but what does sales tax (or some other consumption tax) look like when it's applied to journalists' salaries? Doesn't really make sense, does it.

[nightski]

I actually understand all of this. But if you are investing in society, then that is different than consumption. That should be encouraged imho.

Actually if you dig deeper into fair tax it is theorized that cost of goods would largely remain the same. this is due to the removal of corporate income taxes altogether. Also companies would not pay any sales tax on goods/services.