Please give me an example. As above, focusing on the $ spent, it is a more regressive tax system than today. Our current system encourages the wealthy to put

Please give me an example. As above, focusing on the $ spent, it is a more regressive tax system than today. Our current system encourages the wealthy to put their money in tax shelters and use interest and dividends to consume getting about a 20% tax savings. Good luck earning 20% in the market year after year. Low earners do not have this luxury and tend to pay higher rates rel. to true wages. With the FairTax, if you are using ($tax spent / $wage earned). Then yes, this could be low for a high earner. Ex. a 200k earner saving 75% of their income would be paying an effective tax rate of 12% of consumption or 3% of wages vs 20% if they spent everything. Seems like a nice incentive to invest doesn't it? But eventually all savings get spent. If it's spent by their kids as an inheritance, then they will pay a higher effective rate of consumption than to their labor wage reversing the difference. Now if it's spent by the couple in retirement, the tax to wage calculation makes absolutely no sense because it is INFINITE % taxes to (zero) wages. Whereas focusing on consumption would be 10% tax rate if they keep the same lifestyle under the FairTax. See why focusing on the percent of consumption is important? Either way, the earned dollar will eventually be taxed. One caveat... There is a disincentive to consume primary goods or first run items and buy used. This IMO is a good thing frankly as our natural resources continue to decline with no end in sight. For the wealthy, marginal increases are low but effective tax is high. So there is a much greater incentive to consume than to save for high earners than they have today (increasing market velocity) and a greater incentive to save for low earners. This will also shift investment power from richest of the rich to be more democratic as more small investors enter the market.