We pay property taxes in Texas instead of a state income tax on assessed value — varies on where you live — around 2.6 (Rates per $100.00 value).
We pay a sales tax in Texas — varies depending on where you are — around 8%.
How will Herman Cain’s 9-9-9 tax change that? He said on Meet the Press that (I think — it was hard to tell) that we must not associate the two — that what the states do was....???
READ THE BOOKS! Simple enough?
Any solutions to a serious problems are going to have their warts. To go in a different direction than the one you’ve been in for decades is going to be hard and require discussion & consideration for issues that will be affected. States have the tax policy they do because they’ve adapted to the current tax policy. They would have to do that again regardless of the new plan...flat tax, fair tax, etc. would be entirely new for the country.
At least he’s proposing something boldly enough that people are talking about it. The important thing about the discussion is it’s a complete departure from what we have now. Average Americans hate the current system and with good reason but most have resigned themselves to it. Here comes someone with a simple, consistent message.
Cindie
From http://www.hermancain.com/999plan 9% National Sales Tax. Unlike a state sales tax, which is an add-on tax that increases the price of goods and services, this is a replacement tax. It replaces taxes that are already embedded in selling prices. By replacing higher marginal rates in the production process with lower marginal rates, marginal production costs actually decline, which will lead to prices being the same or lower, not higher.
See post #100.