9-9-9 need help

info requested ^ | today | me

[OL Hickory]

Sorry the vanity, but I need help understanding the 999 plan. Since every thing I read tells me a national sales tax is really a VAT tax..can the plan be changed to a national sales tax on corporations only? Then add into law it can only be increased with a 2/3 majority. I am in no way an economist but I think 27% total tax is still way lower than what business is paying now...And in theory this would be something even the left would have to get behind..They asked for the rich to pay their share and this (in theory) takes the extra tax off the tax payers and shifts it to the corporations..LIKE GE..help me here please I am still undecided at this point...thanks!

[unkus]

ping

[Christian Engineer Mass]

“can the plan be changed to a national sales tax on corporations only?”

Why would you want that?

[ClearCase_guy]

A VAT is a tax on the sale of everything.
Farmer sells wheat? Tax it. Miller sells grain? Tax it. Baker sells bread? Tax it. Restaurant sells sandwich? Tax it.

VAT's are bad.

Herman Cain's plan is a tax on retail sale. Retail only.

It's OK to dislike a 9% retail sales tax, but it is not a VAT.

Also: about 50% of the population pays no federal tax at all. That's not fair. With a retail sales tax, the poor will start to contribute, and they may stop clamoring for the government to spend more, and more, and more.

[OL Hickory]

So corporations like GE pay something...

[ASOC]

Do you think that ANY business will not pass on any and all taxes they pay?

Businesses don't pay taxes, you do.

[AZLiberty]

Value Added Tax - Wikipedia.

A VAT is added at every stage of production, as a percentage of the "value added" (selling price minus costs) at each stage, and is hidden in the price. A sales tax is only applied when the consumer finally buys the product, and is visible as an add-on to the price.

[boop]

Yes, but as far as I understand Cain’s plan, corporations will pay 9% instead of 35%, so necessarily prices will come down. You are correct that businesses will pass on their taxes as a cost, but 9% instead of 35% sounds pretty good.

[justsaynomore]

Corporations current tax rate is up to 35%. As a result, 22% of every item you buy is embedded tax.

Under Cain’s plan corporations tax rate goes down to 9%. This will drive down the cost of embedded taxes.

[foreverfree]

bump

[boop]

I forgot to mention that the biggest squeal from leftists will be about the state taxes. Here in WA, the sales tax is 9%, which would go to 18% under the plan. Now that sucks, but with the reduction in prices overall everything will be much cheaper. If you work and pay taxes, that is. I like the fact that everyone will have a stake, including the 47% of Americans who pay NOTHING. It will put them in the game.

[Christian Engineer Mass]

If corporations pay their customers pay. All taxes are ultimately born by the people. A corporation isn’t a rich bad beast with money to be taken.

[Baynative]

I just heard him explaining this. A person in the 15% tax bracket would gain 6% because their taxes would go down to 9%. When they buy something (new) they would pay a 9% retail sales tax. They would no longer have income taxes deducted from their paycheck.

People in higher brackets - 25% and 35% would realize a bigger drop in tax rates, but are likely to buy new cars and other items that would be taxed at retail. Lower income brackets buy more used goods and would be not paying tax on such.

I suppose luxury items like TV cable and internet service would be taxed at 9%, but heard nothing about utilities or services like dental work.

[DJ MacWoW]

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[Christian Engineer Mass]

Put simply, VAT is a tax on the GDP.

[TomGuy]

Herman Cain's plan is a tax on retail sale. Retail only.

That is the 9% sales tax.

I take the VAT question to be regarding the 'corporate' 9%. As a product moves from idea toward retail, are 9%'s added at each stage of production/development in the corporate/company environment? Or does the 9% only apply to the finished product?

And, is that 9% 'corporate' passed on to the consumer by increasing the retail price?

Per other posts, Medicare/Social Security payroll deductions are eliminated, and M/SS are paid out of the general revenue. With M/SS already in financial trouble, how is 999 going to address that?

And what about the annual shortfall/deficit of some $285 billion that some costing organizations estimate would occur with 999?

Cain needs to say more than 'their numbers are wrong' and 'details are on the website' about these kinds of concerns.

[Logical me]

One question among many I have is if the corporate tax is reduced or done away, will employees get a pay raise? Don’t bet on it.

[lwoodham]

What we have now is already a vat tax. Goods get taxed at every level before they reach the consumer and then the consumer is taxed on the end product. Almost always the intermediate taxes by middle men get added to the price of the product so that the consumer is paying several taxes on an item. The 9-9-9 plan eliminates the intermediate taxes. The only taxes on goods are the 9% sales tax to the consumer. The hidden taxes are gone. Prices should be lower on end products when market pressures prevail. I see nothing bad and only good with the 9-9-9 plan.

[Logical me]

With a retail sales tax, the poor will start to contribute, and they may stop clamoring for the government to spend more, and more, and more.

Wrong. All the poor will do is demand increase in welfare to offset the tax. AND THEY WILL GET IT!!!!!

[upchuck]

I take the VAT question to be regarding the 'corporate' 9%. As a product moves from idea toward retail, are 9%'s added at each stage of production/development in the corporate/company environment? Or does the 9% only apply to the finished product?

Nothing changes for corporations except the rate. They now pay around 35% in taxes. Under Herman's plan, they will pay 9%.