Just think of the poor saps buying a home. Damn tax would probably be more than the down payment and would be payable immediately as part of the escrow bill. Pure crap. Wonder if a previous home would be considered used and no Federal tax? Got so many questions.
Corporate Taxes are passed onto consumers, as much 35% of the price of new car is based on Corporate income taxes. You will pay a 9% sales tax on a car that will have it’s price reduced as much as 26%. Therefore, you will realize an overall savings.
But you’ll have more to spend because your income tax will be significantly lower. And because the car dealer, manufacturer, shipper, etc. have lower taxes, the car will be less expensive. And, unlike your income tax, you can choose, via your purchasing activity, how much sales tax you are willing to spend. 9% of nothing is nothing.
It literally puts more control into the hands of the consumer.
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.
Now I want to see how Herman can somehow lock in the 999 we're good.
This may be a good thing as it makes the tax far more obvious. The problem now (with with payroll deductions) is people don't really know how much they are paying in taxes. I remember about 15 years ago the amount of gas taxes were posted on the pump. That lasted about 6 weeks until the legislature put a stop to it.
Personally, I think the amount of taxation should be the expenditure by government divided by the population. Simply send everybody a bill for the federal, state and town taxes on the day before elections are held.
I would also favor a law that would bar anyone from voting that takes government money in any form. That would prevent these people from voting themselves a raise and prevent the purchase and sale of votes... Which is why it would never happen
Wait a minute here... I think you are misleading people. Because Cain’s plan cuts taxes.
Just the first part is for you, the rest is just a general rant.
You don't have to worry about your new car.
The car price today has higher than a 9% corporate tax already built into the price. The US currently has one of the highest corporation taxes of any major country. When corporate taxes go down, they charge less due to competition to maintain the same profit margins (assuming its not GM). When corporation taxes go down, businesses are more likely to set up shop in the US and employee more people. When more people are employed, less money needs to be borrowed from China to pay our bills (but that is a story all by itself)
In addition to that, you are most likely paying way more than 9% in income taxes today. With 9-9-9 your take home pay increases.
If you are not paying more than 9% income taxes today, then they need to be raised to 9% so that you can pay your fair share. That is one of the good things about the 9-9-9 plan. It does away with pitting those who pay taxes vs. those who do not. Everyone then has skin in the game. Also, when someone pays their fair share, they will begin to feel better about themselves and have a more positive self-worth.
I have read from other that have been concerned about 9-9-9 turning into 15-15-15, 20-20-20, etc. if the Dems have House/Senate/Presidency. It is no different than them increasing the current income taxes to 70% for everyone. If they control all three, they can do it, and it doesn't matter if we are talking about 9-9-9 or the current system. Now the question on if Americans will put up with that is the limiting factor in both cases.
Again, the important point is that it makes everyone equal. It unites us instead of dividing us. It levels the field for corporations as well and then lets the free market economy decide which ones work or not, not the slimy government bail outs and tit-for-tat tax favors we currently have.
Our system of government is not broken. It is doing exactly what the people wanted. Obama was totally out of control, and the last election slowed him down, as desired. Our problem is the people we elect (commies, socialists, the mob, and general USA haters), not the system as described in our Constitution.
Flame on,
Miloh
General even now days on big ticket items I get the seller to eat that cost, I think it will be the same under herman’s plan esepcially with the tax savings the business would get paying only 9%.
RE: 999..
Your reasoning to be against the plan is hogwash... You think having to pay an extra 9 percent on a new car is going to break you? Seriously?
You obviously refuse to see the disparity of the current tax system. The existing tax system allows the Rich to capitalize on loopholes that you will most likely never be able to achieve it may be touted as a progressive tax but it isn’t it is a completely unfair tax system that is dominated with special interests that use the government to force people to change their behaviors through tax incentives what a farce. It is government enslavement.... If you value freedom then you must value a flat fair tax.
Herman Cain’s 999 plan is the closest thing yet that I have seen that can make the system fair for everybody. If you work then you pay more then 9 percent in your Federal income tax now so you will save money there and on top of that you pay FICA. Under Cain’s plan thats what the VAT 9 percent takes care of Social Security and Medicare.... So you save money in the long run. Plus if you don’t really understand just how insolvent Social Security and Medicare are then take a look here http://www.usdebtclock.org/
Do a little studying on the issue and tell me how are you going to ever be able to afford that new car when the Bush tax cuts expire and Obama raises taxes on everyone? Plus when he builds in the tax to pay for Obamacare into the purchase of your vehicle and on top of that when he increases taxes on the “EVIL RICH” don’t you think they are going to raise the costs on all their products to make up for what they are losing out to Obama? So you are really going to get it in the shorts.....
Use your brain, get informed go to youtube and watch every Thomas Sowell video you can find ..... because “It doesn’t matter how smart you are, unless you stop and think”....
My state, Oklahoma, does not have a sales tax on cars. Instead, it has an excise tax based upon the sticker price, not the actual selling price. For me, I would pay less with a sales tax.
you are already paying hidden taxes on everything you buy... i suggest reading the fair tax book by boortz and seeing that the withholding taxes will go away under the 9-9-9 plan and you will have more discretionary income.
used cars will not be taxed and i prefer used to over priced new personally.
9-9-9 is a step towards the fair tax which i believe will take the monies out of our representatives pockets and the power it generates.
teeman
plus a used home is not new so no tax on it.