A National level sales tax is a Value Added Tax.
Will you tax food?
Will you tax services?
Will you tax medicine?
Will you tax medical services?
If the answer to any of those is yes, it’s a VAT.
No, a national sales tax is NOT a VAT. Read the difference somewhere and get back to us.
RE: Will you tax food?
Will you tax services?
Will you tax medicine?
Will you tax medical services?
If the answer to any of those is yes, it’s a VAT.
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SOURCE: http://www.freedomworks.org/blog/dean-clancy/herman-cains-999-plan-the-good-the-bad-and-the-ugl
EXCERPT:
Dean Clancy is FreedomWorks’ Legislative Counsel and Vice President, Health Care Policy:
* The 9% Individual Flat Tax would define “income” as gross income less charitable deductions. The 9% Business Flat Tax would define “income” as gross income less all investments, all purchases from other businesses and all dividends paid to shareholders. It appears the 9% National Sales Tax would be applied to all goods and services sold in the economy, though Congress could and presumably would exempt certain “vital” goods and services (such as food, medicines, health care, education).
** Cain’s plan would also include subsidies for Empowerment Zones, politically defined areas designated by Washington for special tax favors. This would detract from his goal of ending distortions and complexity in the tax code.
**** In the “FairTax” plan that Mr. Cain wants to get to ( to eventually replace 9-9-9, which is a transition plan), every citizen and permanent resident alien would receive a monthly cash “prebate” check from the goverment. This is intended to effectively exempt “essentials” like food and medicines from the tax with minimal hassle and paperwork at the cash register.
What Herman Cain is proposing is a 9% federal income tax on individuals, a 9% federal income tax on business and corporations, and a 9% sales tax. The whole point is that it would be a first step toward a fair ( flat) tax. You can read it all here.
You'll see the plan calls for elimination of the payroll tax which means both your contribution and you're employer's would be returned to you. As well, your employer would now be able to charge less for their services/product because they have less employee overhead. Not only would you have more money in your pocket, you may also find you're paying less for what you buy. Finally, what you're currently paying in taxes will go down.
Go there. read it. Think it over.