“It’s going to raise the price of just about everything by about 9 percent,” said former George W. Bush economic policy adviser Bruce Bartlett. “We know from experience and analysis that that tends to hurt people with low incomes.”
Alright. And wouldn’t prices drop with the concurrent drop of corporate taxes, offsetting the 9% sales tax by a LOT?
Yes. Yes they would. It is NOT a zero sum game.
If you don’t believe that prices will drop as the corporations have the heat taken off of them, then you don’t believe in supply-side economics, the free market and the laws of supply and demand.
In other words - you are NOT a conservative.
How ‘bout the rest of Cain’s plan? Deregulating the energy sector. Opening up our natural resources?
How would $1.50 (or less) for a gallon of gas effect the working class and the working poor?
How about LESS FREAKIN’ POOR PEOPLE? More jobs means more working people and less people worrying about the 9% sales tax.
How about retirees doing MUCH better as corporations thrive and their investments begin to take off? How about the huge number of Boomers who want to retire and can’t because they’ve take such a bath in the stock market over the last five years? I’ll bet they’ll be happy with corporate profits.
You are being taxed this much now in the form of hidden taxes. 999 is revenue neutral, people.
Every time people scream about the 9% sales tax, the more I’m convinced that such an obvious tax would hold itself in check against increases over the years.
Not so with the hidden corporate taxes. We pay it every time we buy anything, but we don’t bawl and cry about it because it’s not *obvious* to us.
So if GE paid no income tax last year, then wouldn't Cain's plan force them to raise their prices? By a LOT?
In other words - you are NOT a conservative.
I want a flat tax, personally, but this goes to show you what will happen to Mr. Cain during the general election. Papa Bush saw what raising taxes on the middle class did for him.
Cain’s campaign centerpiece assures our defeat if it is shown to raise the taxes on the middle class. He’s left the media to present his tax caculations which is another not ready for prime time move on his part.
I’ve been hoping someone would raise that point as well.
People are already essentially paying a 35% national sales tax (give or take) because corporations are passing those costs along to their consumers. Once that tax is reduced by 75%, the price of goods and services will drop. Which means that even with the addition of a sales tax, people are likely to be spending less to buy stuff.
“empowerment zones” are not a conservative value either. Please explain that.