[dawn53]

Cain responded that "Yes, it does sound fair," claiming the tax would even out since under his policy, those same low-income individuals would not pay taxes "if they need to buy a car or a home or some hard goods that are used."

I don't understand this statement.

I don't pay taxes when I buy a home, maybe he means when you sell a home (but that's only if it's a huge gain, or income property.) But I do pay taxes when I buy a car (state sales tax.)

Thoroughly confused by what this statement means.

[Conservative Actuary]

The reason the tax wouldn't apply to a house or car is Cain is making the assumption that they are buying a used house or car not brand new and under the Fair Tax which his 9-9-9 plan is a hybrid of the tax is only paid on new purchases.

I don't know if his plan includes the prebate that the fair tax included to avoid this charge.

[justsaynomore]

He means there is no tax on used goods.

[jimmyo57]

“Thoroughly confused by what this statement means.”

It didn’t make sense at first to me either. But I think it’s meant poor people wouldn’t pay the 9% Fed Sale tax on “used” items. Because a Fed tax was already paid when they were new.