My family will pay a lot more in taxes and that we can’t afford. This plan would also end tax deductions for home, health etc.
I understand your concerns since I'm scraping by just like most people. Let me see if I can explain it a different way.
If corporate taxes are lowered from 35% and all the loopholes that create unfair competition were gone the free market would force prices down drastically. Would you be willing to pay a 9% sales tax if it came with a 25% decrease in prices?
Tax deductions are the tools our government uses to control our behavior. If everyone pays the same tax rate regardless of whether we buy a house or rent, have a stay at home parent or pay for child care, buy your own health insurance or get it through work then we are more free. Deductions are one of the greatest baits that have been used for decades to lead us into the trap we are in now.
That 9% will be recouped of course, the prices of home will inflate, and not because of market value, but because everyone will recoup that tax and pass it to the next buyer. There comes another bubble and one that cannot be corrected, as in the end the value of that home is all TAXES.
The housing industry is the real ENGINE that drives all the economy, without the homes moving/selling nothing/nobody works. Just think of all the industry related to home building and all the things those workers purchase with their income, staggering to comprehend just how much depends on a good housing market.
We need to get it back to a healthy status,and the home interest deductions need to remain. I don't want that to change.
Tax 9% on every new car? It has already devalued when you drive off the lot, how you going to recoup that 9%, on top of the excess tax?
This 999 thingy is just too dangerous a can of worms to open up, IMO.
The correct answer is: CUT SPENDING pure and simple.
Yeah, but Cain also proposes Caincare where everyone gets to write off their health insurance cost. It’s a little confusing.