What he said was, that the federal government has nothing to do with the state tax, they never had before so why would they now.
The current price of a product includes all the federal corporate taxes of each ingredient as well as the federal corporate tax of the manufacturer that assembled the product. The national sales tax as envisioned by Cain would eliminate all those taxes that are embedded in the price you pay. (The figure I have seen for this hidden tax is roughly 35%.) This means the price of the final product would go down. How much, hard to say but very likely more then then 9%. The federal government would collect its tax at point of sale, Cain's 9% sales tax in the 9-9-9. Remember you pay for all those current corporate taxes now its hidden in the price. So the federal government does collect that hidden tax. Today even if you only pay state taxes on a product you are still paying that hidden federal tax! With Cain's 9-9-9 and when it transitions to a all sales tax system, the federal taxes are not hidden. They are collected at point of sale. A national sales tax would be a boob to savings, in fact a 2 income family could bank much of the 2nd income if they choose to, by not using it to purchase anything. Now remember the Cain plan does not include Social Security, Medicare deductions, etc. Those would still be deducted, and is a separate problem. Its only about your federal income tax. Also state taxes are just that state taxes and are a problem between you and your state legislator. Something Dave Gregory on “Face the Nation” couldn't understand. Stupid stupid man!
What might I buy that would incur a national sales tax?
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