[the invisib1e hand]

He’s pushing a VAT? I don’t like that idea.

[DManA]

Is it a retail sales tax or a VAT. I read both. People swear it’s a sales tax. Others swear it’s a vat.

Cain has to nail this down. His web site is ambiguous.

[Jim Robinson]

Total B/S!

[Kahuna]

Pretty simple:
9% sales tax applied on all new goods (.09xselling price before local & state sales tax) Used goods..no tax

9% income tax on gross earnings less charitable deductions

9% corporate tax on net earnings (salaries/payrolls not expensed)

No payroll tax, no cap gains tax, no death tax

[justsaynomore]

I read that article, then see that this person is basing HIS numbers on Bloomberg's faulty analysis last week. 9% Business Flat Tax ◦Gross income less all purchases from other U.S. located businesses, all capital investment, and net exports. 9% Individual Flat Tax. ◦Gross income less charitable deductions. 9% National Sales Tax. ◦Unlike a state sales tax, which is an add-on tax that increases the price of goods and services, this is a replacement tax. It replaces taxes that are already embedded in selling prices. By replacing higher marginal rates in the production process with lower marginal rates, marginal production costs actually decline, which will lead to prices being the same or lower, not higher.

[Oatka]

It appears to me that CATO is misrepresenting different parts of Cain’s plans.

[mnehring]

Except Cain’s plan isn’t even close to a VAT tax. Anyone who has worked with EU corporations can spot the difference almost immediately.

A VAT taxes all level of production of an item or service. VATs can actually end up costing the end purchaser 27% to 30% more on the cost of an item- and this is in addition to the hidden corporate taxes already built in.

Cain’s plan is a flat 9% at the sales end and 9% to replace the corporate tax. That is a drastic reduction over the taxable expense corporations pay and pass on to the customer.

[behzinlea]

Just more evidence that Cain's simple-minded tax plan is anything by simple in practice.

I have yet to see any two people really agree on what 9-9-9 means.

[mnehring]

I find it funny, this same author proposed an almost identical corporate tax proposal in 2007.
http://www.cato.org/pubs/articles/edwards-taxnotes-laffer-curve.pdf

He basically makes the argument in that article for Cain’s 9% corporate tax he is now falsely calling a VAT.

The only difference, he is calling for higher rates- 15%.

[Kahuna]

While some will have their ox gored....tax accountants....the beauty of 999 is that everyone will share in the cost of government and suddenly become a little more fiscally conservative. Lobbyists will also lose an ox or two as it pertains to congressional tax loopholes. IRS employees could be sent to secure the border! lol

Investors worldwide fight to the death for a one or two percent edge. Can you imagine the flood of dough into our Country once cap gains is eliminated?

[Wizdum]

9-9-9 Calculator