Cain claims there are "hidden, secret, embedded" taxes in the price we pay for goods due to the taxes on business to business that are figured into the final price of goods.
The number I've most often heard is 22%. Cain says he wants to replace the "hidden embedded" 22% taxes with a visible 9% Fed Sales Tax...
People claim the Fed Sales Tax is good because it "captures revenue from illegal immigrants" at the cash registers.
But don't illegal immigrants pay MORE NOW with the "hidden embedded" 22% than they would under 9-9-9??
If 9-9-9 replaces 22% hidden taxes with 9% visible taxes, isn't that a Revenue SHORTFALL for the Fed Govt? How does that help us when we are $15 Trillion in debt?
I’m going to take a shot at this..??.
Company A makes widgets and pay a 35% corporate tax so company A passes on his cost of goods including his tax liability to Company B that assembles the widgets into a product they retail. Company B may buy gadgets and materiel from multiple vendors, all of which pay 35% tax and include it in the final products they sell. Company B must pass on all their costs including their 35% tax in order to earn a profit.
I don’t totally understand it either. However, if his plan generates less revenue than the current system, then I’m all for it. If the giant government brings in less money, then they will have to cut spending. Because, Mr. Cain is set at 9-9-9, and no more. I’d really like to hear more from Mr. Cain on spending. What is he going to do about this ridiculously huge government which is crushing the private citizen? Is his plan to choke it with 9-9-9, or does he plan on actually cutting spending?
This 999 this is supposed to be so simple, but it seems as if no one gets the same thing from what they think this 999 plan is or does. I know I'm totally confused.
sklar, I've been wondering what you just mentioned too. If we are taking the consumer-hidden taxes from the federal revenue and replacing that with such a lesser amount of federal tax revenue, I would think we would have to have corresponding tax cuts from the federal budget to align to the lesser federal revenue proceeds.
I'm certainly OK with a smaller federal government, but I would think we had better have cuts in place or at least ready to go when we start having that lesser federal revenue coming in.
Of course, as I said, I'm pretty much confused in all of this anyway and hear something different every day, so I really don't even know if I'm close to seeing the benefits verses the pitfalls.
Excellent question!
One of many reasons we need to know more about the details. (This won't all get sorted out before election, but it's certainly going to have to get sorted out before it goes to Congress for vote.)
currently, embedded tax represents tax costs of the seller - not tax costs of the buyer. In an embedded tax scenario, the buyer pays the seller’s taxes, not his own.
In 999 as I understand it, the buyer pays a portion of his own taxes in a purchase - and the seller pays a portion of his profits [which, oddly, ends up hidden!!!]
People claim the Fed Sales Tax is good because it “captures revenue from illegal immigrants” at the cash registers.
But don’t illegal immigrants pay MORE NOW with the “hidden embedded” 22% than they would under 9-9-9??
But it’s a good argument in the alternative.