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To: JerseyHighlander
A VAT (Value Added Tax) is NOT a Sales Tax. A Sales Tax taxes goods and services at the point of final sale. A VAT tax is added throughout the manufacturing, distribution and sales process. IOW a VAT is added at every step. They are different. Understand that.

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.

136 posted on 10/13/2011 9:22:54 AM PDT by bcsco (A vote for Cain will cure the Pain!)
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To: bcsco

RE: 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.

OK, can you answer this question -— How do you fund current retirees depending on Social Security if the Payroll tax is eliminated?

Isn’t part of the Payroll tax used to pay for Seniors on SS?


140 posted on 10/13/2011 9:24:53 AM PDT by SeekAndFind (u)
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