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To: PapaNew
Right, except I'm of the understanding that the plan subtracts the purchase price from US companies at each stage of the supply chain, which would have the effect of a one-time-only tax I believe.

The biggest problem with the sales tax is the constitutionally-protected income tax. Until the 16th Amendment is repealed, the sales tax will be and ADDITIONAL TAX not a replacement tax. The 16th Amendment must be first repealed before a sales tax is created.


You are correct. The sales tax portion of the 9-9-9 plan is NOT a VAT, meaning that is a point of sale tax, not a tax that occurs at every stage where "value" is "added". Currently, the total sale price of an item includes 22% of embedded taxes, mainly passed on corporate taxes. So, in effect, you are already paying this ADDITIONAL TAX, it is just hidden.

I completely agree on repealing the 16th Amendment. What this plan does is eliminate our current monstrous tax code and replaces it with a 9% flat tax. Eliminating the tax code is step one in repealing the 16th Amendment.

Lastly, the 9-9-9 plan eliminates other current taxes including the payroll tax and the estate tax and it reduces tax rates while widening the tax base.
2,156 posted on 10/19/2011 7:02:57 AM PDT by Eagle of Liberty (Shaking My Head on a daily basis)
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To: Eagle of Liberty
eliminate our current monstrous tax code and replaces it with a 9% flat tax. Eliminating the tax code is step one in repealing the 16th Amendment. Lastly, the 9-9-9 plan eliminates other current taxes including the payroll tax and the estate tax and it reduces tax rates while widening the tax base

This is all good stuff. But what CAN'T happen is the creation of a sales tax BEFORE the 16th Amendment is repealed. A sales tax on top of a VERY-HARD-to-repeal Constitutionally-protected income tax and IRS would be disastrous.

The initial income tax reduction would of course create massive recovery along the lines of the historic 25-years of prosperity following Reagan's historic tax cuts.

Afterwards, going to work to repeal and eliminate income tax and (most of) the IRS would be a wonderful thing I think, if a sales tax is truly better than an income tax, which I kind of think it is as long as it is a one-tax only retail tax and not a tax repeated though the supply chain. We would need to accept that it would be a huge and possibly drawn-out effort to repeal the 16th Amendment which would be akin to killing some kind of invincible monster. As Reagan said, "No government ever voluntarily reduces itself in size. So, governments' programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth."

2,168 posted on 10/19/2011 7:26:16 AM PDT by PapaNew
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