Not "more." Read the plan.
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 ...
So under Cain’s plan, Americans can’t buy new stuff without a 33% penalty. And people support him?
Back in the day it was called “double taxation”. It fell under the auspice of “Taxation without Representation”. Herman Cain can get those fine points on later.
“The trick is to buy used but in really good shape. No sales tax. Already been paid once.”
Right. But what if you are the guy that sells NEW stuff for a living? And there are a lot of those guys by the way.
Considering that we are the consumption giant of the world, you would think a reasonable tariff would be acceptable.
The argument goes that, if we have a tariff, then other countries will tariff our goods. And since we already have such a trade imbalance, it will ultimately hurt our economy. That does seem like a bit of a surrender.
Free trade is good for consumer prices, but we should charge importers for access to our markets.
I thought the Obama Bad Lip Reading video was ok, but nowhere near as good as the Perry vid. I didn’t watch any of the others.
Huck does seem to be clueless on this plan. He might want to read it in full, and not jump to unsubstantiated conclusions.
Not "more." Read the plan.
Yes. MORE. I worked. I earned. I paid income tax. Payroll tax. I invested. I earned. I paid dividends tax. Cap gains tax. Now, under the Cain plan, if I dare SPEND that money, already taxed several times, I’ll be taxed on it AGAIN. 33% MORE.
The Fair Tax is perfect for you. It is a tax plan for savers. All your future savings will now be tax free, and all your current savings will now benefit from an explosion of economic growth.The face value of your savings are reduced 23% on day one of the fairtax.
Exactly. Can you imagine hording metals out of inflation fear on the one hand, and supporting this idiotic tax plan on the other? What's worse? The possibility of double digit inflation or the surety of a double digit consumption tax?
I would admit that the IRS can downsize, but I still see 15k of their folks around to investigate people who will still try to sneak around the factual reporting. But I will caution you on two episodes that will come. First, the initial Xmas season will shock everyone with prices up by nine percent on gifts. Retail sales will decrease by twenty percent. Things will recover in two to three years as people get used to this. Second....sticker shock over new car sales will be a problem, and for an entire year....folks won’t be buying new cars because of the cost factor.
“Yes. MORE. I worked. I earned. I paid income tax. Payroll tax. I invested. I earned. I paid dividends tax. Cap gains tax. Now, under the Cain plan, if I dare SPEND that money, already taxed several times, I’ll be taxed on it AGAIN. 33% MORE.”
I paid income tax. Payroll tax. No you don’t. I pay or supply you with the money to put your name on an income tax form and your payroll tax form ever time I buy a product or service from your company. You are just a conduit for the paperwork. I am the Consumer, the End User of goods and/or services. The money from my Send-able income pays all taxes and fees related to any goods and/or service going all the back to the natural resources to produce that product/or service. If I don’t buy your product or service there is NO Money to pay your payroll, income taxes or hidden fees and your company is out of business.
All the fair tax does is take all those taxes and fees out of the darkness and into the light so every time you spend your take home money you will see how much it cost you to run the federal government. When our elect representatives are tempted to raise that tax we can call them and tell them no. In order to have the lowest possible fair tax rate there can be no exception to the tax.
I like the idea of a sales tax.
I want every citizen to feel the pain of paying taxes every time they spend money. Most people in this country think they get money from the government each year in their “refund checks”.
Then politicians can compete on the idea of lowering taxes to garner support instead of gouging the productive members of society.
precisionshootist - this is not entirely directed at you, I read a bunch of negative comments getting down to yours so this is more directed at all the anti-fairtaxers that for the most part seem like they are against it because they dont understand it.
Seems like everything I hear people bitching about has been thought about and covered in the Fairtax plan, PLEASE Read the Fairtax book... it explains it all pretty simply.
I just dont see what is so difficult to understand about the fairtax, The constitutional amendment that creates the fairtax and abolishes the IRS, says they cant raise it to 10,000% without 2/3 vote, not 2/3 of congress 2/3 of states... you realize how difficult it is to get 2/3 of states to agree on anything, much less raising taxes right? We already pay an embedded hidden tax on everything we buy which when figured up came out to about 20%, It is tax paid all the way up the line... from buying seed, to growing the wheat to distributing the bread... it would also include all the corporate taxes the parent companies of everybody involved in the process pay... so once the fairtax is implemented, all that hidden tax will go away, then companies/manufacturers can sell their stuff for less and still make their same profit, you add the 20% tax back in and we come out paying close to the same amount for a given item when it’s all said and done, it wont be a 20% tax on todays prices. Then I can hear the next arguement now... You (or others) say they wont lower their prices they will take the extra profit... well in our capitolist economy, I say you are wrong, typical market competition will drive the prices back down to the old standard profit margins. There are plenty of real world examples that have already happened pointed out in the book, where when costs went down, so did end price.
The Fairtax brings back all the outsourced jobs and companies that fled the country to get away from our terrible tax code, (as long as Obamacare is overturned, that may throw a wrench into the Fairtax) because now their corportate rate is 0... Not only are you getting taxed IF you decide to spend your savings, but so is the Whore walking the street and the Drug dealer driving the 100K escalade paid for in cash with tax free money. I guess the way around getting taxed on the money you spend... Buy used...
Best of all for those of us not living off of savings, still working and better still for our children that have a lifetime of work left to go along with a 50K+ bill already the second they are born, is that when you get your paycheck, you get your whole paycheck, not a paycheck that has 25-30% or more deducted out in payroll deductions... they all go away, if your making $25 an hour and you work 40 you will get the whole $1000 instead of $650 or so... I am sorry if somehow you few american savers out there feel screwed by this, I just dont see it personally, with eliminating all the other taxes... instead of spending it, invest it first and spend your new tax free profits instead...
Not true. The price of production is reduced by the tax burden now built in. Yes, you pay much more sales tax on that item that used to cost a buck. However, when you remove the taxes at the various stages of production (payroll, corporate, etc), that item no longer costs a buck.
In addition, you control your taxes because you control your consumption. Used products are tax free. A saver will save. The prebate pays for your tax burden on mandatory consumption like food and fuel.
The Fair Tax is a saver’s plan. Savings yield economic growth as those savings are invested.
Where in Cain’s plan do you find a 33% tax rate?
Where in the world are you getting a 20% or 30% tax? It is nowhere in Cain’s website concerning his Phase 1 or Phase 2 of the 9-9-9 plan.
How mature of you.
I’m not saying 20 to 30 percent on the 999. The 20% or higher amount would be trying to eliminate income tax and replace it with a sales tax and the reality is it would be even higher.
As is with no changes, Cains 999 plan would mean the citizens of Texas would pay 18% tax on everything they buy!! That alone would crater the economy of this state. People will not buy stuff with a tax that high.
It won’t work, simple as that.
Rule number one. NEVER create a new tax. Creating a new tax always without any question will result in paying MORE taxes. Don’t fall for it, ever.
“The trick is to buy used but in really good shape. No sales tax. Already been paid once.”
Would that not put manufactures out of business?
Or send even more manufactures overseas?
New Car Sales, New Equipment sales, New Boats, New Electronics etc...?
What would that do to the economy?
Without going into detail on numbers and such with the Fair tax. In a nutshell here is the problem and why I say it won’t work.
When you tax something or some activity, it discourages that activity. This is a fact. So when you tax income, it discourages income. When you tax cigarettes, it discourages smoking cigarettes. The fair tax is a tax on consumption. and it will greatly discourage consumption.
The American people want lots of stuff and they buy lots of stuff. The fair tax would stop that behavior dead in it’s tracks. When you discourage people from spending money you are going to bring the economy to a screeching halt.
The American people will simply never be able to wrap their heads around a huge tax penalty levied on them whenever they spend their money.
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