Posted on 10/12/2011 8:34:49 PM PDT by UnwashedPeasant
Few seem to know it, but Phase 2 of Cain's 999 plan is the FairTax. Cain's website says the following about the FairTax:
1.) Amidst a backdrop of the economic boom created by the Phase 1 Enhanced Plan, I will begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax.
2.) The Fair Tax would ultimately replace individual and corporate income taxes.
3.) It would make it possible to end the IRS as we know it.
4.) The Fair Tax makes our exported goods and services the most competitively internationally than any other tax system.
(Excerpt) Read more at hermancain.com ...
“What part of “corporations will not lower prices when their taxes go down” don’t you understand, Marie? “
Wow. OK. For a moment I thought I was talking to conservatives on a conservative forum where free market principles were pretty much accepted.
Competition drives down prices in a free market. Deregulation will help the process along.
And if they don’t go as low as you think they should?
Well then evil corporations will get this thing called PROFIT and their stockholders (retirees and the rest of th 40% of all Americans who’re invested in the stock market and evil profits) will also profit and be able to RETIRE (or be more comfortable in their retirement) if they want to...
And Cain *is* all about cutting spending and paying down the national deficit. Just because the focus is on his tax reform plan doesn’t mean that this is all there is to the man.
Look, the free market works. Competition works. Prices will go down.
If we don’t believe in this system then we may as well pack it in a join the communist revolution.
**************************
Right now there is a protest on Wall Street because corporations are stockpiling cash instead of investing in new hires or banks giving out more loans.
The reason they’re behaving this way is because they see Obamacare coming down the pike.
If you KNOW a storm is coming, you will alter your behavior to protect yourself. If you KNOW that there is fair weather, you’ll take more risks.
In the right environment, business will expand and thrive. They will reinvest in themselves. The spirit of the free market and competition keeps things in check.
Prices will go down.
And save a pretzel for the gas jets. Ice cream is cheap. Fact.
Thank you for your very coherent response. I rest my case!
Famine bores me. Then we took a virgin heffer night riding. We didn’t see any dead spirits though.
This princess in the mustache, everybody hook up, one-size-fits-all...babe!
Seriously though Huck, you are being quite dense regarding 999. It’s not perfect, but it is a lot better than the current crappy tax system we have, and would result in taxes being paid more equitably, i.e. everyone would pay taxes. Right now, 50% of Americans don’t pay anything.
And it is a gateway to the Fair Tax, which is much more fair than the immoral income tax.
lol....taxation aside, wasn’t that video hilarious??! My wife and I have watched it a dozen times! I cannot wait for some medieval cookie, cinnabon, hot yella kool-aid, and save a pretzel for the gas jets! (thank you, I wrote that.)
Now I’m going to have to watch it again.
I’m tiring of this tax stuff. I think I’ve made my point up and down.
That is part of Cain's agenda. Look at #2, right under National Security:
http://www.hermancain.com/the-issues
Cain knows how to cut spending bigtime as a business exec.
Bite me.
Savings are already being taxed by monetary policy. When the Fed prints another $Trillion, every existing dollar loses value. Compared to real money (gold), you have already lost over 33% under Obama.
What’s good is to get these goats for our computer industry!
I know. So what’s another 33%, give or take?
Apparently you don’t understand it is not a business income tax. You can’t compare the insanely high business income tax rates today with Cain’s gross sales tax for businesses. It is a tax on gross sales less dividends, investment goods, and purchases from businesses. Wages are not deductible. A company could be barely profitable and be put into the red by this tax. Even if a company makes no money, they owe the feds tax. The estimates on this are that it will bring in $600 billion a year which is more than what the feds currently take in. It also favors capital intensive industries rather than labor intensive ones. The prices of goods, on average, would not go down.
The flat personal income tax is a good idea.
None of this will ever pass in its current form because it is a regressive tax package that the Democrats will block because they’re constituents would actually have to start paying income taxes.
It’s a nice marketing pitch for the primaries.
>> It is a tax on gross sales less dividends, investment goods, and purchases from businesses. Wages are not deductible.
Seems like payroll is getting taxed twice?
I love that video, too. Very creative.
Some do the Olympics, and some defy the titans. Ice cream.
I’m tired of taxes, period. Colonial Americans paid less than 5% in taxes, and that led to the Revolution. 20th Century politicians really screwed this country royally. I don’t think we can ever put the genie back in the bottle. Sad.
Since there is no cap on "incluse tax" the correct answer to your specific question is 'nothing'. 50% TRUE tax=100% "inclusive tax", and 100%=infinity. Whatever a 10,000% tax would be is in there somewhere.
First, there will always be an IRS. The difference with the Flat tax is that 95% of the agents will need to find a new job because 5% is all we will need. You really think if the feds get their money from sales taxes that there will be no federal agents to make sure everyone is paying said tax? give me a break. If anything they will need more agents because grey market “untaxed” goods would be rampant.
You say the Fair Tax is only applied to new retail purchases, buy used. Well that’s my point exactly. People will QUIT buying new stuff and will only by things they absolutely need. Take a guess what that little fact will do to businesses and ALL the people that work for those businesses. You got it. They will GO OUT OF BUSINESS.
Another problem: some states have no sales tax at all. when the federal tax hits at 20% or greater guess what? The people in that state just got their income cut by 20%.
In states like Texas you will be facing a 30% or greater tax on everything you buy. Want to go new car shopping? Want to be in the new car business? How about nice jewelry? Still want that $3,000 watch that with tax now comes to over $4,000. I’d hate to try to make a living at the jewelry store. How about heading out to best buy to look at a new ipad2? It’s $600 now but after the fair tax in Texas it’s now over $800, still want it?
Sorry, I can’t support a plan that has both a national sales tax of 9% and a flat tax of 9%.
And further, if you want to really get at ‘wealth’ of rich liberal million and billionaires, you need the sales tax (tax on what they buy), not the flat tax (only interest income). Otherwise Buffet just keeps getting to bitch he’s not paying his fair share.
Wonder how fast Obama called him up and said “Warren, you know, if you feel guilty about it, you can always pay MORE than what you owe.”
Such hypocrites.
The trick is to buy used but in really good shape. No sales tax. Already been paid once.
Nope, I got it backwards, whatever a 100% TRUE tax would be on any item would be equal to a 50% "inclusive tax" on the same item. Nuts.
LOL! Man I love that video. Was disappointed their other ones just weren't as good. That one is comedy gold.
About taxes, I was looking at a chart of US revenue sources going back to the beginning. We used to fund 80-90% of our government with taxes (duties and imposts?) on imports. Over the years, those fees have gone down from 20-odd percent to 1-5%, and it has become a tiny portion of our revenue, while income taxes have become the major source.
Is it just me or is this screwed up? I realize spending is a big issue, and I'm for cutting it down to size. But why has the GOP been so adamant about tarring all tariffs as "protectionist."? Some are, but it ain't necessarily so. You can have tariffs as a legitimate revenue source, as most countries (I think ) do. I think we're getting screwed. We're sheared sheep. No?
Well said. That is the only tax a free individual should pay.
At the Federal level, however, there is a better system of taxation proposed by the Cato Institute: Reverse Revenue Sharing.
Under this system, the Federal Govt does not tax individuals; it taxes the states, and takes a flat percentage of what the state collects in taxes. High-tax states pay more. The states would be 50 laboratories for tax efficiency.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.