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.
The housing industry is the real ENGINE that drives all the economy, without the homes moving/selling nothing/nobody works. Just think of all the industry related to home building and all the things those workers purchase with their income, staggering to comprehend just how much depends on a good housing market.
We need to get it back to a healthy status,and the home interest deductions need to remain. I don't want that to change.
Tax 9% on every new car? It has already devalued when you drive off the lot, how you going to recoup that 9%, on top of the excess tax?
This 999 thingy is just too dangerous a can of worms to open up, IMO.
The correct answer is: CUT SPENDING pure and simple.
“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!