Current Tax System vs. Herman Cain 999 Tax Proposal
What would happen to the cost of a new house?
Retail price:
Now = $200000.00
999 = $170040.00
Local sales tax pct rate = 0.00%
Local sales tax dollars:
Now = $0.00
999 = $0.00
999 federal sales tax pct rate = 9.00%
999 federal sales tax dollars = $15303.60
Total cost with taxes:
Now = $200000.00
999 = $185343.60
Dollars saved with 999 plan = $14656.40
22% of the current cost of retail items is due to the current tax system. Herman Cain’s plan removes this hidden tax and replaces it with a 9% flat tax. The 999 price in this calculator has been adjusted to reflect this fact. Yes, that’s right. Retail prices willl go down under the 999 plan. The effect of the current tax code on retail prices has been well documented by the FairTax supporters. You can obtain documentation for this at fairtax.org.
I guess I must have misunderstood from last night, and honestly, I have not looked into the details. But I thought Hermain said the 999 does not affect the local sales tax-it stays in operation. That was part of the apples-oranges argument.