And they no longer pay any taxes on their dividends or cap gains which would offset these other taxes.
You are assuming that senior citizens all have stocks to sell in the first place. Tons don’t. So, they will pay the new value added tax (which is what it really is) and get no other benefit out of 9-9-9. Bully. Great idea there.
OMG....freepers are scaring me on basic math and taxes....it appears that many have no real experience with them other then a friggin W2..
9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!9-9-9 IS NOT A VAT TAX!!!
Please, I beg all of you to read this blog on 9-9-9....
Please tell us all where you get the idea that this is a VAT ?
With a Retail SALES tax of 9%:
1. A dairy farmer produces a gallon of milk at a cost of $1.00 per gallon. He marks it up 45% to give him enough profit to stay in business, and sells his milk to a processor for $1.45.
2. The processor marks it up 45% to give enough profit to stay in business, and sells the milk to a wholesaler for $2.10 per gallon.
3. The wholesaler marks it up 45% to give enough profit to stay in business, and sells the milk to a grocery for $3.05 per gallon.
4. The grocery marks it up 45% to give enough profit to stay in business, and puts the milk on the store shelves at $4.42 per gallon.
5. A parent buys the milk to put on their cereal at home, and pays 9% sales tax at the cash register, resulting in a cost to the consumer of $4.82 per gallon.
With a 9% VAT tax, again starting with $1.00 per gallon to produce the milk from the Cow:
1. A dairy farmer produces a gallon of milk at a cost of $1.00 per gallon. He marks it up 45% to give him enough profit to stay in business, AND he charges the 9% VAT tax, and sells his milk to a processor for $1.58.
2. The processor marks it up 45% to give enough profit to stay in business, AND he charges the 9% VAT tax, and sells the milk to a wholesaler for $2.50 per gallon.
3. The wholesaler marks it up 45% to give enough profit to stay in business, AND he charges the 9% VAT tax, and sells the milk to a grocery for $3.95 per gallon.
4. The grocery marks it up 45% to give enough profit to stay in business, AND he charges the 9% VAT tax, and puts the milk on the store shelves at $6.24 per gallon.
5. A parent buys the milk to put on their cereal at home at a cost of $6.24 per gallon, retail price, no sales tax.
Net difference to the consumer = $1.42 per gallon MORE under a 9% VAT tax than under a 9% sales tax.