Fannie Mae (FNMA)

[Donotunderstand]

I am saying that the lower and middle class pay far more of their meaningful income in taxes. The less they make the less they have in disposable monies.

I saw that- the above

It is wrong

One must talk as a % of income --- not dollars

Lower class income makes less money and has less money

However - the lower class - the bottom 40-45% pay zero or near zero income tax. They do pay the FICA

Again - I do not agree with the comment that the lower class pay far more of their (meaningful) income in taxes when talking about income tax (the alternative to consumption as FICA continues in all events and is thus not an issue)

The next 40-50% pay an average tax of about 10-18%

The next 8% (90-98%) is where you start to see average tax payment rates of 20-25 and the 95-98 are at say 25

Many people who are in the top 2% have more than 25% of their income on average paid in taxes. The higher up one goes (mostly in the top 1/2%) the more they have the ability to use MUNI bonds and real estate and other means to have effective tax rates like Mitt Romney - but still higher than 90% of Americans

Note - the famous Buffer v his Secreatary - that is an executive assistant who likely earns about 100K - which is in the top 10%

Sorry but the facts do not bear out your premise that the lower and middle (think 20% -60% -20% - so the 60% for middle) income pay far more of their income as a % d

And just to clarify

Those portions of the economic ladder (bottom 80%) spend all of their money on NEEDS. Very little is saved. Thus 100% of income is consumed and taxed in a consumption tax. The higher your income - once you get to say top 5% - the more of your income is not consumed so even less of your income is taxed

Using your words and my understanding

Meaningful income for a family of four earning 95K is 95K
Meaningful income for a family of four earning 950K might be 300K .... so a consumption tax - would hit all of the income for the bottom 80% in these sentences where a consumption tax would not hit 2/3rds of the higher income family --- and thus a consumption tax would not hit that money

If the tax is 12% then the rate for lower and middle is 12% and for the 2-1% it could be - as in this example - 4%