Posted on 10/19/2011 11:22:57 AM PDT by TLittlefella
“Too bad your analysis is complete divorced from all fact.”
I don’t think some of these people want to be bothered with facts.
Moving at least part of the tax burden from an income tax on production onto a sales tax on new goods would be one of the best possible things we could do for the middle class.
The middle class in this country is dying.
Our manufacturing industry which used to provide the foundation of the economy for the middle class has fled to more hospitable lands.
The 9-9-9 plan dramatically reorients the incentives in the economy away from service jobs and back to capital-intensive production of goods and places part of the tax burden onto goods produced by foreign businesses.
Without something this dramatic, there is really little hope of changing the future prospects of the middle class in this country.
Anyone who has spent more than one day in Europe knows what a VAT does. Consider this VATS in Norway, Denmark, Sweden – 25%. Top tax rates in those countries are about 60% on anything over, about, 70k a year. Add ‘em together – and you’ll understand why a 10 pack of Coke costs $10 or a McD’s Value Meal is $15.
As part of being a responsible spender of my money I always buy used houses and used vehicles.
Also I buy used because the insurance rates are less epxensive as well.
And i don;t mind paying 9% sales tax on food if the food prices are lower and if the EBT queen is making the government pay itself back on food stamp purchases.
Boo freekin’ hoo....
I understand that there is an “occassional sales rule” exemption to the sales tax, just like in most state sales taxes.
That is, if you are not a retail business or otherwise don’t routinely make money by selling things, the tax does not apply.
I think the standard rule is no sales tax on:
(1) two sales in a rolling 12 month period;
(2) sales of the assets of a company or a division of a company.
So a house, for example, would not be subject to a sales tax.
Similarly, a food and clothing up to a certain dollar amount would not have a tax.
Cain made a mistake by promoting a specific simplification plan. The 9-9-9 plan is a balanced plan between personal income tax, business taxes, and consumption taxes. Other approaches are the Fair Tax (all sales tax) and Flat Tax (all income tax). I am not sure which plan is preferred. All would be preferred to the mess that we have now unless you are a member of the tax freeloading group. He should emphasize the principles of tax reform (simplification, non politicization, transparency, and others) as a vital element of economic revitalzation.
I find it distasteful the attacks on Republican candidates by other Republicans. I will support the Republican nominee and not speak ill of any candidate (except Ron Paul). Conservatives will not win unless we are unified.
What about Bachmann’s 28 ?? Or is it 47 ? I can’t keep it straight, because she mentions it so rarely. /sarc
This is all well and good, but your illustration TOTALLY IGNORES payroll taxes of 7.65% (yes I know it has been lowered this year, but that's temporary) which means an additional $3,825 in taxes.
Moreover, Cain's plan also removes the employer's match of payroll taxes and, at least in theory, many employers would pass on at least a portion of this money to their employees. Now, you can say all you want that employers won't do this, but I can tell you that whenever I hire someone I am adding 10-12% to their compensation to cover payroll matching and other benefits.
Art Laffer endorses 999
http://online.wsj.com/article/SB10001424052970204346104576637310315367804.html?mod=rss_opinion_main
BTW - all the candidates in last night debate were playing catch up to Cain’s plan with their ‘flattening’ of the current tax codes, better get on board the Cain train is leaving the station
I think Romney should fear a change in the tax code that would put all those “elite” GOP lobbyists out of work.
Also, don't forget the income and withholding taxes you currently pay on the portion of your income used to pay the principal on that $200,000 house.
Even combing the 9% sales tax with the 9% flat tax on income Cain is proposing, the ultimate cost of buying a house would be less under 999.
combing = combining
Check this out:
WSJ poll (in progress):
45% think it is a good idea
34% think it has possibilities
20% think it is a bad idea
Total votes: 9052
http://online.wsj.com/community/groups/election-day-684/topics/do-you-think-herman-cains
That’s what I’m thinking.
I heard Mark Davis explain the 999 this morning and he made sense.
Cain needs to ‘explain’ it more then just use ‘apples and oranges’, it will work, trust me. EXPLAIN so the laymen can understand!
Claiming 9-9-9 is a VAT indicates either the poster has no clue what he is talking about or he does know and he is merely lying about it in the vain notion it helps his candidate of choice.
I knew a guy that had a littlefella, and he was a bitter littlefella, it’s called littlefella’s littlefella complex, and I’m truly sorry for you, because the disease, in the third stage attacks the brain, and renders you incoherent.
Who pays sales tax on a home purchase?
I’m not passing judgement, good or bad on the 9-9-9 plan...but I know this. It won’t sell during the general election, and it will be a detriment to Cain (whom I think would make a good candidate, if it wasn’t for this one plan.)
When the MSM start milking the fact that the “poor”...who haven’t paid any taxes in “forever” (in fact they’ve gotten checks back from the gov’t when they paid nothing in due to credits)...will have to pay 9 percent sales tax on top of the state sales tax, which in our state is 7 percent...on the purchase of food, and medicine, and “necessities”...their cries and fear mongering will be heralded from the roof tops and Cain won’t be able to sell his plan to the general public.
Of course it will affect the women and children most, not to mention the disabled and elderly. /sarc And people will believe it and reject Cain. Now that’s just MHO, but I think it’s pretty accurate as to what will happen.
Selling 9 9 9 to the conservatives, that’s one thing, selling it to the independents...big problem.
Isn't Cain's 9% federal sales tax only applied to purchases of new items? Aren't used items exempt?
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