I too am concerned about this 999 stuff which to the average Joe, is interpreted as a tax increase. A delivery truck guy told me yesterday that he doesn’t want to pay an additional 9% tax on his purchases.
Love Cain..see my tagline. But he really doesn’t need to ID himself so closely with this plan and keep repeating how much he believes in it. He can sell himself on who he is without it.
I think it is too late now for him to divorce himself from 999. He has painted himself as the 999 guy, unfortunately.
Under the current system, when you buy a good or service, the tax burden of everyone involved in producing it is embedded in the final price. Just like if you have a job, the money that you pay in taxes comes from the people who buy your product. If you didn't have to pay taxes, you would charge a lower price for your product.
When the program is fully implimented, list prices will go down so that the final price you pay to get out the door (price + tax) will equal the same price as you would pay under the old system.
Not all of the market adjustments would happen instantly, certain effects would occur quickly and taper off, others would build up slowly. Addaptive mechanism like a prebate can be employed to ease negative impact during the transition period while maintaining the positive effects.
Who is Herman Cain? A business genius who understands how economics and finance work. He has used that genius along with his leadership skills to correct the problems of every business he has been in charge of.