What is the incidence of tax on the wealthy today?
That is to say, how much of their economic increase in net worth each year is taxed? The necessity for the AMT should be a clue to the correct answer. If anyone remembers, Ford, not the President, the owner of Ford Corporation was a poster child for the AMT. He paid virtually no tax yet spent millions each year on personal consumption. The situation has not changed much since. Many people who are against the fair tax are those who live primarily off of wealth and inheritance. It would reduce their purchasing power and make them relatively poorer. There is a much fairer solution to that problem. Go earn some money.
