The person who buys a new car will pay a lot more in federal taxes than the person who buys a used car (9% vs 0) but people just focus right now on daily expenditures, not the big ticket items where the rich spend money. Jet fuel, anyone?
Besides the hordes of Americans who don’t pay any federal taxes now, DC lobbyists and tax lawyers are going to be very vocally anti-Cain.
While that is true, Cain’s plan brings back choice to the market place. You don’t have to spend the money on a new car if there is too much tax. The plan,that treats all the same, brigns back individual choice not choice by govt. and k-street lobbyists.
Yeah, I'm kinda wondering about that. Why would anyone in their right mind buy a new car with its inflated "new car" price, plus the sales tax?
I'm thinking it would largely limit new car purchases to governments, nonprofits and fleet/lease purchases. But it would create a hell of a used car market.