But they will pay 9% for food, 9% on their drugs..9% on their fuel, energy usage, etc.... did you know some of their drugs run over $1000 out of pocket each month?
And they no longer pay any taxes on their dividends or cap gains which would offset these other taxes.
I’ll post this again for all. Those on the Cain train feel free to use this link as proof to counter the 9% sales tax argument.
Cain stated on Huckabee Saturday that Social Security would not count as income tax and there would be no tax on any savings plans including 401k’s.
As for the price of goods and services here you go.
Examples of How Taxes are Hidden in the Price of Goods
Americans for Tax Reform (ATR) has calculated several examples of how taxes affect the purchase price of several goods and services. The ATR figures include the impact of all taxes — not just certain hidden taxes — on prices. According to ATR:
• Taxes account for 35 cents of the cost of a $1.14 loaf of bread.
• 18 cents of a 50-cent can of soda go toward taxes.
• 72 percent of the cost of a 750-ml bottle of liquor goes toward taxes.
• Taxes for an $80 hotel room average 43 percent.
• Taxes account for $63.60 of a $159 airline ticket.
• A $153.09 monthly utility bill consists of $39.35 in taxes.
• Over half the cost of a $1.33 gallon of gasoline is due to taxes.22
A 1992 Cato Institute study looked at taxes somewhat differently, calculating how much someone needed to earn to have enough after-tax dollars to purchase several products. The study concluded that a typical worker needed to earn $17,038 to buy a $10,000 car, and $2,556 to purchase a $1,500 computer.
Now look at the cost of that $10,000 car with the 999 plan.
10,000 multiplied by .09 (Business tax)+.09 (Sales Tax)= 10,000 multiplied by .18= $11,800
$11,800 Cains 999 plan
$17,038 current plan
You tell me which one is better.
So a retiree would only pay for the 9% sales tax compared to the hidden 22% average they pay now.
If you read that link you will see how prices of goods and services will come down due to less taxes and the free market.
As far as the empowerment zone thing there are not enough details yet to evaluate it. When more details come out we can debate that issue.
Where do you get the information that food gets taxed? I haven’t seen that.