Posted on 10/13/2011 8:30:53 AM PDT by Watchdog85
What is so fair about the “empowerment zones”?
This gets the Fair Tax off the sidelines and into the game.
This does not explain anything. This could be a retail tax or a VAT. He needs to add much more detail, or drop the whole subject.
If democrats regain control, they could raise the rates on whatever tax system is in place. With 100% of the people paying the sales tax and income tax, it would make it harder to raise those rates than the current system of ‘tax the rich’. Not the mention the 2/3 requirment to raise the rates. Which, admittedly could be removed with a simple majority in congress and signature by the president. But that is one more hurdle required than now.
I think he needs to clarify th Empowerment Zones before he gets my support. Sounds more like Perpetual Welfare Zones to me.
Yep! There is no tax on wholesale, only retail. You’re thinking of the VAT tax where a tax is added at all levels. Cain’s 999 has no tax on wholesale and no tax on sales of used stuff.
35% to 9% is a big difference.
wholesale product taxed 35% to make the product.
cains plan: wholesale product taxed 9% plus your 9%= 18%
Michele Bachman Turner Overdrive says this plan cannot possibly work because using the economic theories and mathematical models of Professor Lou C. Fur, if one indicates and applies the U.D. method to the 999, you can rationalize and observe the negative demensional plane.
Thanks, I could not get it to post like that.
A lot of people are complaining that this will be the 29-29-29 plan before long. Any tax plan is subject to increases. The income tax started out as a simple plan to tax only the wealthiest and look at what we have today.
It will be harder for congress to raise a tax that affects everyone. Now only the top 50% pays any income tax so close to a majority aren’t affected by increases.
Money put into savings will be taxed at a lower rate. And too, there will be no capital gains tax to eat away at interest earned on savings.
Foreigners will be contributing to our tax base from purchases.
Businesses will be moving here from overseas instead of the other way around.
And, one of the best parts to this is the saving of the 400 billion now spent to comply with the current laws.
Yes it could become a monster just like the tax code we have now but it will take some time and the economic boom that results will be obvious to everyone. It will be up to the citizens to keep congress in line and with 100% paying in that will be much easier to do. When the top 10% of earners pay 70% of the tax it is a lot easier to get the population behind raising taxes.
Finally, the tax code should be a vehicle for funding legitimate government and not to pick winners and losers or affect peoples’ behavior or to redistribute wealth.
I fixed jets for 25 years. When something was broke I’d troubleshoot, then put together a plan to correct the problem. I stayed with that plan through its course of action until repair was complete.
While another would go around in circles trying to decide what to do, no plan and never attacking the problem. At the end of day my jet was out flying making revenue while the other still sat broke in the hangar.
Nothing gets fixed without a plan, Herman Cain has a plan.
It’s worse than that. Scratch “wholesale” , you’ll be paying 9% on that.
Well said. And welcome to FreeRepublic.
Oops, sorry—misread the date and thought you were new to FR!
How about we just skip the distraction of 999 and go straight to the FairTax and be done with it!!
well no—wholesale product is not taxed at 35%
Lets say I bought a dozen necklaces from my NY supplier at the trade show in Vegas, He is a sole proprietor that imports from the Philippines. Definitely, not a mega corporation—so the 35% corporate tax does not apply.
Now, if his cost for some reason becomes less, will he charge less? No, he will maximize profits, just like I do. Now, his necklaces are pretty darn low anyway, so saying someone will come in cheaper is a misnomer here.
I live in the world of table top capitalism. Pennies do count. If I can not deduct my fuel, my living expenses on the road and the cost of fairs like I currently do, I would not have much at the end of the year.
Now I gotta do paper work for not only the four out of the five states I sell in at fairs, I gotta do FED sales tax too.
If I am wrong here, point it out to me.
This answers your question:
all purchases from other businesses (No VAT)
The fair tax would be even better because it would be voluntary and it would allow people to keep their whole paycheck. I think the prebate is a stroke of genious and the whole thing would supercharge the economy. I think Cain thinks that it would be too radical a change to be accepted and that is why the 9-9-9 plan is a transition phase to the ultimate goal of the fair tax.
I like it.
Exile, deportation, imprisonment, and execution?
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