Who says that rich people don't spend all of their money? The idea is that they will buy lots of stuff, such as their 50 sports cars and 3 yachts, and therefore pay more in taxes. It would be preferable to have the sales tax be bracketed in terms of inherent value/necessity, but how would one go about determining that?
yeah all those rich people living paycheck to paycheck
What he said was harebrained (and similar to the defense of trick-down economics I gave when I was in the sixth grade, only sillier, given this context), but believe it or not, that is actually not unheard of:
http://www.nytimes.com/2009/02/08/fashion/08halfmill.htmlOf course, this is neither here nor there, but just making an aside.