Yawn. Inane protectionist policies.
You might want a crash course in this: http://en.wikipedia.org/wiki/Comparative_advantage
1. 9% business flat tax
2. 9% flat personal income retail sales tax
3. 29% tariffs on all imports
9% business flat tax
9% flat personal income tax
29% tariffs on all imports
Yep tax the foreigners for the right to sell their stuff in the great American marketplace. Prices will rise a bit but this will bring home lots of jobs and factories. This will encourage domestic oil production after the next Republican president nukes the EPA because we import 60% of our oil
There is an added bonus to the sales tax and it's a big one.
The plan will harvest at least $8 to $10 billion per month (potentially more, much more) in revenue that is currently going off shore. It will restore a great deal of competive balance in the import/export arena.
Under our current system, all of the tax liability of the people and companies involved in producing and selling a product are embedded in the cost of the product. For example, when Ford pays the assembly line worker, the pay includes payroll taxes and income taxes paid by the worker. That expense all goes into the price of the car. When a foreign product comes in, it does not have US taxes embedded, however it competes in the marketplace against US products that do have the embedded costs. When the foreign product is sold, the difference heads straight out of the country. With the 9-9-9 plan, at least 9% of the embedded costs are removed and collected at the point of sale instead, resulting in an out the door price roughly equal to the previous price. The foreign product must now compete at the lower cost. The 9% sales tax is added on the end. The little bonus that the foriegn company was collecting is greatly reduced. Since our trade deficit alone is $80 billion per month, we know at least that much will be subjected to 9%. In truth a whole lot more. Sales tax on imported goods will be a tax bonanza without the US taxpayer paying one nickel more.
On the other hand, what does it do for US exports. The 9% sales tax is already removed from the cost of the goods. Also, export revenue is excluded from the 9% business tax. So exported items will have a total cost at least 18% lower than they currently do. Just imagine what that will do for the export of US manufactured goods and food. An export bonanza. The profits from this will go back into the economy and be hit with the 9% sales tax. Everybody makes out, more jobs, more exports increasing profits and 9% sales tax reaped on the expenditure of those profits.
Win-win-win!