Prices will come down because now hidden taxes represent about 22% of the costs of goods. Those costs will be eliminated by the new tax code.
There would be no taxes on used goods.
I think another advantage of the sales tax approach is something I think I’ve heard Rush say. Payroll taxes are “passive”. Wage earners don’t have to actually write a check or dig the money out of their wallet; it’s just withheld paycheck after paycheck. Oh, yes, you know its coming out, but you never get the money in your possession, in your hands and then have to surrender it. With a sales tax, you are constantly aware of the taxes you are paying and the great majority of people will be very vigilant about how they spend their money and much more sensitive to the fact that the government is taking the money from us time and time again: this will compel a great many more people to be watchdogs over how the money is spent. I suppose its theoretical, but it makes sense.
I’m not saying I’m sold on 999, just pointing out one of the arguments for it. I do LOVE Cain for his genuine, American, patriotic, plain-spoken, optimistic persona. I think he’d be a good president, but I’m not sure he’d be able to go the distance as candidate. He’s a little mistake prone on the fly and has to walk back things, which can accumulate and become killer problems when the Chicago machine goes after him.