Approx 22% of the retail price of items in the USA is due to federal corporate income taxes that would go away under Cain's plan. How would this affect your car purchase?
Current price = $30,000
Retail price under 999: $25,560 ($23,400 + $2,160 corp income taxes)
Sales tax under 999: $2,300
Total price under 000: $27,860 (you save $2,140 under 999)
You also have to factor in how much you would save on the state sale taxes on the car, since you would be paying them on a $25,560 purchase price instead of a $30,000 purchase price.
If you state sale tax was 6%, you would save $264 ($1,800 vs $1534).
The 999 plan would save you about $2,404 on the purchase of your car.
People need to come to grips with just how much we pay in hidden taxes that are built into the price of products we purchase. If they did, they'd realize that the 9-9-9 plan ends up saving consumers money on almost every purcahse.
I'm not sure why it's so hard for people to see the advantages of this 999 proposal.
I heard but have not confirmed that the sales tax portion of the program only applies to new items? If so buying a used car or preowned home would be very interesting.
Thank you for this - nice and easy to understand.
Very good illustration. You and I have had the opportunity for Neal and Herman to explain it in detail on WSB, we need to keep repeating it for all of these people who are gun-shy of a national sales tax.
It’s a good thing people...with all of the embedded taxes being eliminated and the stability it affords the business owner, we’ll unleash a bunch of capital and things will get better quickly.
Herman is the man, I’ve no doubt about it!