The 15.3% is charged against all of your income. Though you pay half and your employer pays half. Only the first of the 9% of 9-9-9 is on all of your income. The second 9%, or the sales tax portion, is only on any “new” item you purchase. Even if you used every penny of your remaining income on the 9% deduction for income tax to purchase new items, your tax expediture will be less than 9% of your total income.
Since purchases are something you can control, you will determine how much of your money after income taxes actually goes to pay the sales tax. If you only purchase used items, such as a used car or used house, you will pay no sales tax.
Some people do not understand economics or how taxes are computed and how they cause the cost of items to go up, increase employer expenses and retard economic growth. So it is difficult to explain these things to them. That’s how you get ridiculous ideas like 30% tax from the 9-9-9 tax plan.
This plan will bring all of the 48% who do not currently pay income taxes inline with the rest of the taxpayers. Putting us all on an equal footing. It will lower the business tax rates and remove incentives for those who take their businesses outside of the US. The subsidies would end for businesses, and I believe but I’m not certain of this, the IRS EITC welfare system ends. It leaves deductions for charity. Nine-Nine-Nine simplifies the tax system. It will create jobs, jobs, jobs. It will grow, grow, grow the economy. It may well take business from tax accountants, but finally the tax system will be working for everyone.
Yes I am starting to understand this a lot better and now that Art Laffer and Paul Ryan have come out in favor of this plan I feel more comfortable with it.