Every criticism of 9-9-9 that I read steps around or blatantly AVOIDS the reality of EMBEDDED taxes in every good/service in the so called ‘free’ market. If the business cost of producing goods/service is reduced to 9%, then the ‘levelizing’ force of embedded tax GOES AWAY. Allowing businesses once again to COMPETE by becoming agile, efficient, and streamlined and setting their PRICES accordingly.
The COST OF LIVING will DROP folks. The 9% sales tax will merely level that out. Any other criticism that AVOIDS the embedded tax portion of the arguement is DISHONEST.
I keep hearing people say they don't like Cain plain because 9-9-9 may become 20-20-20, I don't think so.
The Sales Tax revenue stream to the Gov’t is the only new stream and the plan eliminates the payroll tax stream.
The Sales Tax stream will be less likely to go up then anything else. People will have this money in their pocket and will notice every time it changes. The payroll tax people never see the money so they never really notice how much it is.
The new sales tax is Cain way to introduce the FairTax, eliminate the fear at a low rate.
I like his plan, sure every plan is going to have issues and people can come up with arguments.
I've always wanted a simpler tax policy then what's going on now and Cains the only one offering it.
The COST OF LIVING will DROP folks. The 9% sales tax will merely level that out. Any other criticism that AVOIDS the embedded tax portion of the arguement is DISHONEST.
I agree. The Fair Tax folks have done extensive research on the concept of embedded tax. It is one of the foundational points of the Fair Tax. The HR 25 Fair Tax bill shows embedded taxes make up 22% of the cost of a product.
Yes.
People are acting as though 9% would be slapped on prices frozen in time today. Wrong.
By the time businesses were free of the payroll tax and the corporate tax -- coupled with households generally having more disposable income because of a lower tax rate -- you would quickly see these companies getting busy on trying to gain market share and grow sales volume with price decreases.
Anyone can understand that if a business can lower the price of a good and thus spur increases in the volume of sales, it makes money.
That is what would happen in the entire economy. Prices would go down, volume of sales would go up, economic growth would be wonderful.