Herman Cain's 999 plan.
Cain is for the Fair tax and should say so... something like...
I’m for the Fair Tax. but it will take time to get rid of the 16th Amendment. We need help Immediately, and 9-9-9 is my first phase which will have almost immediate results.
that’s how I’D say it.
As this thread will amply demonstrate, people are motivated by a very shallow sense of self-interest and are either too intellectually lazy to evaluate a new idea or are simply intellectually incapable of evaluating a new idea.
Where does that figure come from? What I mean is, how is it arrived at? What taxes figure in to it. Since Cain's plan removes specific, identified taxes from the equation I assume there are other federal excise taxes that will remain and which might alter that 22% figure.
Your take home pay will go up by almost 8%, because the payroll tax is eliminated.
Assuming, of course, that your company takes the savings it realizes from a expense it has occurred and out of the goodness of its corporate heart it passes it on to the employees who didn't pay it to begin with. Knowing my company as I do, I'm not holding my breath on that one.
Locally we have a sales tax of about 6% on just about everything including food and clothing. With the 999 plan I suppose I would be paying a 12% sales tax on at least some items. However, implementing the tax nationwide would be difficult as states and localities have a hodgepodge of sales taxes that apply to different things. For example some states do not collect sales tax on food or clothing. Taxes on new cars also vary widely (only 3% in this state). I could see implementing this national sales tax to be very difficult and costly to the merchants who will be collecting it.
You can if taxes and compliance costs are reduced for producer allowing him to get the product on the shelves cheaper.