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To: RC one

“That means that 66% of them are going to get a 9% tax increase on everything they buy.”

No. They won’t.

With the corporate tax rate dropped to the lowest tax rate in the free world, prices will drop and we may end up paying LESS for an item than we do now.

A large percentage of what you see as the retail price is made of ‘hidden’ taxes. (the FairTax website estimates that it’s about 22% - I’ve seen estimates as high as 50% for certain items)

So are you alright paying massive taxes as long as they’re invisible?


77 posted on 10/16/2011 11:52:49 PM PDT by Marie (Cain 9s Have Teeth)
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To: Marie
With the corporate tax rate dropped to the lowest tax rate in the free world, prices will drop and we may end up paying LESS for an item than we do now.

that's a big freaking assumption and there is nothing to suggest that it is a safe assumption. basically, much of the success of Cain's 999 plan rests on the willingness of businesses to make less money for goods when they can just as easily charge the same amount and make even more money. What would motivate them to make less money exactly? the goodness of their hearts? because they're just making too much money now thanks to 999 and they want to give back? and I'm not even mentioning the deflationary aspects of rapid and massive price reductions especially in the presence of a consumption tax that targets the bulk of our consumers.

89 posted on 10/17/2011 12:04:44 AM PDT by RC one (Voting isn't a simple act of civic duty anymore, it's a complex act of civil war.)
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