Posted on 10/13/2011 2:31:28 PM PDT by La Enchiladita
(1) We have the disastorus example of the VAT in Europe. It is an absolute bog on their economy. VAT’s don’t work.
It doesn't matter what "the People" want. We had the disasterous example of a National Healthcare System in England and yet Obamacare was passed.
I’ve seen your post and several others citing a 9% tax on food and medicine. Although I agree that such a thing might be problematic I also have read the Cain plan as saying, and I quote, “This gets the Fair Tax off the sidelines and into the game”.
The way that the Fair Tax works is that there is a “prebate” which functions to offset the tax on certain staples. If the 9% tax is implemented in this fashion then the discussion of tax on food and medicine is moot.
It puts in place the infrastructure for a VAT, a Value Added Tax. That’s bad.
A VAT may be terrible, but sales taxes do not necessarily devolve into VAT taxes.
And I got a good edumucation!
Dumb SJB
It would mean that there would be more tax on gasoline though...but my guess is that with Cain going after energy here in America with a will, th eprices (like they did under Bush) would fall below $2 a gallon fairly quickly and offset the 9% be several times.
We will also lose the inheritance tax, the capitol gains tax...and someone said the gift tax too, though that is the first I had heard of that. All of that would be good.
Cain freaks?
Who are you a 'freak' of? Do tell.
One issue with the 9% is the election. If Obama can show that 999 will cost middle and lower class families more, then he will have an advantage.
The way to blunt that advantage is to exempt food NOW from the 9% sales tax. While the prebate takes care of all that if we ever get a system with only an nrst, for now care should be taken with voters in the election.
Yep. They get paid with the bank’s money; the bank gets it back over time.
I’ve always felt a flat tax is the best.
My proposal would be a 14% flat tax with the first $30,000 you make tax free.
If you make less then $30,000 then you don’t pay taxes BUT you also don’t get any tax ‘returns’ either.
Corporate rate set at 6% with the first $100 million free (net)
That worries me! Although Cain wouldn't do it a Democrat would jump on it.
That’s an interesting article. It needs to be posted in FR for discussion.
How about when 100% are paying the tax as opposed to just we 53% currently, the Resist We Much movement will be a lot stronger.
Do you think we ever would have accumulated a $14 trillion debt and $120 trillion in unfunded liabilities if during all these years *everyone* -- even the poor -- had to pay at least some federal income tax?
No way. With skin in the game, even the poorest, most uneducated taxpayer would ask, But will this awesome new federal government program mean I'll have to pay more in taxes?
Lower income people will have to “fill out a financial statement to prove they qualify” for a rebate on a regressive sales tax? And who’s going to review these financial statements to make sure they’re legitimate? And how often will they have to be filed? Sounds like a job for a bunch of government bureaucrats. I thought the idea was to simplify things.
Maybe Zero will point out that 999 is 666 upside down.
9% sales tax on a home sale is a considerable chunk of change.
he was beat to the punch
National sales tax is not a good idea at all. It makes all businesses and all members of transactions tax collectors for the fedguv. Having owned a business for most of my adult life I can tell you that state sales tax audits are every bit as onerous as IRS audits anf federal sales tax auditors will be able to reach unimpeded into interstate commerce at their whim including every transaction between any two citizens. Careful what you wish for.
Secondly Herman turns social security and medicare into full fledged entitlement, read welfare., programs by funding same with 999 general revenues. Under 999 nothing will distinguish Medicare from Medicaid since both will be funded from general revenues.
Is this really where conservatives want to go?
I like Cains boldness but I think the details and unintended consequences are undesirable. Like Paul Ryan I think the best route is the simplest, most efficient least intrusive tax and that would be a flat tax without the thousands of pages of bs.
I have a question that I haven’t seen addressed anywhere. If you eliminate payroll taxes, which includes FICA, doesn’t that imply that Social Security would have to be reformed or completely overhauled or replaced? Paying FICA taxes is what determines benefit eligibility and benefit amount. Is this part of the 9-9-9 proposal?
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