Cain Leads Romney in Iowa; Perry, Bachmann Decline

IB Times ^ | 101211 | IBTimes Staff Reporter

[conservaterian]

They won’t be administering it. It will be issued at the point of sale. This is a Federal sales tax, there will be a whole new huge department to collect it from the sellers and a whole new set of regulations and red tape that businesses have to deal with. As to buying used, what do you think will happen to the price of used cars if you have to pay and extra 9% for a new one? If everyone bails from buying new cars, used car prices will soar. This 9% sales tax is a dog that just won't hunt and Cain is dead in the water if he continues to push it.

[BenKenobi]

It depends on how you do it. A straight plan that has 9 percent at the point of sale, puts most of the administration costs on the business, not on the administration.

It only is difficult to administer if you have loopholes and cuts. 9 percent across the board, with no rebates? Easy as pie.

Meanwhile you have the simplification of the tax code in the income tax and corporate tax. So it’s not as if he’s proposing a 9 percent sales tax without doing stuff to fix the income tax code at the same time.

“As to buying used, what do you think will happen to the price of used cars if you have to pay and extra 9% for a new one?”

Cars will retain their value for longer. That’s not really a bad thing.