The author is wrong about this part.
The other liability is his “9-9-9” plan, to which he is now indelibly and irretrievably attached. I predict we will soon see businessmen all across the fruited plain come out against the national sales tax component of this plan because of the impact it will have on retail sales, which of course have been sluggish at best for the last four years. People in many places will be paying nearly 20% in combined sales taxes under his plan. For instance, in my home town, the sales tax on every burger we buy will be 18.5%.
He doesn’t consider hidden taxes already on goods and services that will be removed by the 999 plan.
Examples of How Taxes are Hidden in the Price of Goods
Americans for Tax Reform (ATR) has calculated several examples of how taxes affect the purchase price of several goods and services. The ATR figures include the impact of all taxes — not just certain hidden taxes — on prices. According to ATR:
• Taxes account for 35 cents of the cost of a $1.14 loaf of bread.
• 18 cents of a 50-cent can of soda go toward taxes.
• 72 percent of the cost of a 750-ml bottle of liquor goes toward taxes.
• Taxes for an $80 hotel room average 43 percent.
• Taxes account for $63.60 of a $159 airline ticket.
• A $153.09 monthly utility bill consists of $39.35 in taxes.
• Over half the cost of a $1.33 gallon of gasoline is due to taxes.22
A 1992 Cato Institute study looked at taxes somewhat differently, calculating how much someone needed to earn to have enough after-tax dollars to purchase several products. The study concluded that a typical worker needed to earn $17,038 to buy a $10,000 car, and $2,556 to purchase a $1,500 computer.
Now look at the cost of that $10,000 car with the 999 plan.
10,000 multiplied by .09 (Business tax)+.09 (Sales Tax)= 10,000 multiplied by .18= $11,800
$11,800 Cains 999 plan
$17,038 current plan
You tell me which one is better.
That is just federal taxes, do you think the state taxes are just going to go away?
Math Fail.
Do it all while talking foreign policy, environment and job creation and make it stick.