I already pay taxes, and I don't particularly like the idea of having to pay nearly $4000 in taxes if I purchase a $25,000 vehicle. That's 15.25% out of pocket for me that doesn't contribute to 1 dime to the principal of the cost of that car. Tack on interest rates, and people will be upside down like hell on their vehicles. I'm in the middle of 2 leases. If this is implemented, and I go to purchase or lease 2 more vehicles, I will be paying out the butt on taxes just for 2 purchases.
My other issue with this is that I don't trust those who implemented Obamacare and the stimulus bill to limit themselves to 9% rates. Since a congress can't bind future congresses to anything, Cain would need a constitutional amendment in order to get this plan implemented. That would, at minimum, need a net gain of 20 seats in the Senate and 48 seats in the House. And that's assuming that the northeastern republicans would go along with it.
The situation we are in now is the result of consumers buying things they can't afford, and with the consumer I include government.
If you as a consumer want to be a debt slave, that is your choice, but don't expect the government to encourage your behavior (as they have been). Why has the idea of saving up money to buy things not occur to people anymore?
If it were up to me, there would be a constitutional amendment to remove the income tax and all federal revenue would be from a retail sales tax. I mean a retail tax too. I do not want a VAT that hides taxes from the consumer. I want everyone to know the cost of government first hand.
I already pay taxes, and I don't particularly like the idea of having to pay nearly $4000 in taxes if I purchase a $25,000 vehicle
It looks like your state has a 6.25% sales tax already from your comment, so I'll use that in the computation.
Current retail price: $25,000
Current retail sales tax: $1,562.50
Current total cost: $26,562.50
The current system has approx 22% of taxes built into the cost of every retail item, which will be eliminated under the 999 plan and replaced by a 9% rate.
999 retail price: $21,255.00 ($25,000 - 22%) + 9% 999 income tax
999 local sales tax: $1,328.44 (because it's on a lower base rate, your local sales taxes will go down).
999 federal sales tax: $1,912.95
999 total cost: $24,496.39
You would save $2,066.11 under the 999 plan over the current plan. The 999 plan is a good deal for you, if you are planning on buying a car.
On to your second concern: congress could raise the rates on the sales tax. Consider this:
Congress could raise the rates of the social security tax.
Congress could raise the rates of the medicare tax.
Congress could raise the rates of the unemployment tax.
Congress could raise the rates of the deatch tax.
Congress could raise the rates of the top tax bracket.
Congress could raise the rates of the second to to income tax bracket.
Congress could raise the rates of the middle income tax bracket.
Congress could raise the rates of the second to lowest income tax bracket.
Congress could raise the rates of the lowest income tax bracket.
Congress could raise the rates of the capital gains tax.
Congress could raise the rates of the reparations tax.
Congress could raise the rates of corporate tax.
Congress could raise the rates of the alternative minimum tax (amt).
Congress could raise the rates on all these taxes now. And most of these tax streams are hidden/low-profile tax streams. 999 eliminates all these tax stream, and replaces them with a single, in-your-fact, gets-everyone-mad-as-hell-if-they-raise-it tax stream.
Which is more likely to get raised by congress? An in-your-face sales tax, or one of the multiple, low-profile streams in the current system?
You said you don't like the idea of paying nearly $4000 taxes on a $25,000 vehicle. As Brookhaven said, that implies that you're paying 6.25% in sales tax now. So apparently your voting district doesn't have a problem paying 6.25% in sales tax, or they wouldn't have voted for it. Apparently there was some benefit to the community that the voters approved of, so they voted for a 6.25% sales tax. It would be the same with 999. Either it gets voted in, or it doesn't. Either people see the cost/benefit of the 9% tax, or they don't. Either we get services for the 9% that we approve of, or we don't vote for it (and by “we”, I mean Congress). But just because Cain promotes it doesn't make it law.
Secondly, let's not forget that it is your choice to purchase a new vehicle for $25,000, rather than buying a used vehicle for $25,000. Under Cain's plan, if you buy used, you don't pay that sales tax.
Third, as to everyone’s concern that 9% can become 20% or 30% in the future. This is true. It can. But our current tax rates can too.
The difference with Cain's plan is that if every man, woman, and child in the United States is affected by a raise in Cain's 9% sales tax. So everyone in the United States will scream bloody murder for every one-tenth-of-one-percent that they try to raise it. Because, as others point out, those people who are currently sucking off the teat of the rest of us will suddenly feel the burden (Heaven forbid!) of something called TAXES. That means the 50% of this country who are not currently paying taxes will have a reason to VOTE DIFFERENTLY in the future when it comes to raising taxes. So it will be difficult (but admittedly not impossible) to raise the national sales tax in the future.