“That 9% will be recouped of course, the prices of home will inflate, and not because of market value, but because everyone will recoup that tax and pass it to the next buyer. There comes another bubble and one that cannot be corrected, as in the end the value of that home is all TAXES.”
Cain has stated that the tax will only be on new items, not re-sold items. So only the first owner would pay the 9% tax on the house. However, I am concerned that because everyone would scramble for pre-owned housing, the new housing market would go down even further. Not a good thing.
I myself would like to see Cain present his 9-9-9 plan as a way to start the conversation, not the only possible tax reform plan. I think he has a lot of other strings to his bow besides 9-9-9 and I’d like to hear about them, too!
Of course, Cain could also add an expention for new homes (as a trade off for the home interest deduction going away--something I support). The plan right now is just a framework, not the finished product.