Herman Cain's 999 plan.
I don’t eat apples. How will this plan help me?
999 was a boneheaded decision. Cain is not ready for prime-time.
He needs to explain it better. He was fumbling around last night like a clown talking about apples and oranges. Soundbites messages matter.
what is the corporate tax rate?
isn’t it the highest in the world?
eliminating it, would not only make items MUCH cheaper,
it would also instantly make USA produced goods,
the most competitive in the Western world !
...the people who MOST hate replacing corporate tax
with a sales tax
...are the CHINESE !!!
Is the income tax replacement portion of 999 going to be attractive to the 47% of the voters who pay no tax right now? Save for purchases which ostensibly include the 22% embedded corp. tax, is HC asking them to tax themselves? If he is, then he ought to run on some other platform, then spring this after he is elected. I would appreciate a more balanced tax system, but it is so unbalanced now that the winners outnumber the losers and won’t elect change.
Home sales and other incidental sales are not subject to the sales tax.
Anyone who thinks businesses are going to uniformly pass on any proposed savings to the consumer is a naive.
That (suspect) 22%, um, profit will go to the shareholders. In most cases.
Your apple will be $1.09.
The issue of price stability is not the issue with the 999 plan.
The issue is that Cain’s plan to transition to the FAIRTAX will be stripped out by Dem Senators leaving 999 bare and sent to the President who will then be faced with a challenge to sign or veto. Whoever the President is will sign because the political backlash will be too much to bear; wage earners will receive more take home pay, corporations and businesses will receive a much needed tax break and the national sales tax will become a VAT hidden away from consumers.
The issue then is that the United States will have:
1. An Income Tax
2. A National Sales Tax
3. A VAT
and over time the 9-9-9 will become 29-29-29+Hidden VAT.
Congress is full of deceit, always touting good intentions but never delivering on rolling back any tax until the grassroots has had enough, and even then the snake oil peddling politicians will use all kinds of sweet lies to fool the public yet once again.
Best to get behind the FAIRTAX and stay there.
http://www.fairtax.org/site/PageServer?pagename=about_faq
Study Study Study and Ask Questions!
Costs to the supplier might. However, I would not make the assumption that prices at the consumer level will. Actually, prices for American consumers could even rise, especially if the NST is not applied to exports.
Wrong! As a retail business owner I would welcome the wider margin and use it to pay down some debt or maybe even afford some other necessities. Lower prices would be the last thing I would do.
Lowering the corporate tax rate does not necessarily mean lower prices.
I can’t afford to pay my home ownership dues and my drug dealer for heroin. I’m voting for Obama.
Virginia, for example, double taxes one regarding income form Canada and other countries.
It doesn’t matter. We can whine all we want about “the right thing to do” or “principles” but I don’t see a 9% sales tax getting through Congress. Who is going to vote for it? Besides liberals, of course.
Also your state taxes go down.
If you were paying 6% State tax on that 100 $1 apples you pay $6 in state taxes.
If you pay 6% state tax on the 100 .88 cent apples you on pay 5.28 cent in state taxes.
Today the state is taxing you on the sale prices which include Fed tax built in, state is taxing the the Fed tax you pay
anyone here pay state and fed gas tax, or a state, fed gas tax and state sales tax???
Except you left out (on purpose?) the deductions people now receive when they itemize, in which case your average middle income homeowner and/or self-employed small business owner is likely going to be paying more in taxes. Maybe a lot more.
What no one discusses on the payroll side is that the social security tax remains. Many of us (not me) only pay social security and medicare tax. So they get hit with an extra near 9%. Plus the student loan deduction goes away.
This will hit the younger population.
All the proposals for drastic change to the tax structure (999, flat tax, fair tax, etc.) suffer from obvious logical flaws.
They claim that simultaneously:
1. Everybody’s (or almost everybody’s) taxes will go down;
2. The proposal will be revenue neutral.
This will not fly. For a tax system to be revenue neutral, if taxpayer A’s taxes go down by $1000, taxpayer B’s must go up by the same amount.
IOW, there will be specific winners and losers with any change in the system. As a general rule, those who see their taxes going up with any general proposal will oppose it with much greater fervor than those whose taxes might theoretically go down will support it.
That is why major changes are so difficult to bring about. Concentrated opposition, diffused support.
>> 22% of the retail price of items is due to federal taxes.
Bullshiite.
This premise is unsupportable, and upon it hinges the rest of the analysis.