“You’ll notice from the calculator that you can significantly affect your tax rate by purchasing used items (say at Goodwill, something that a person making under 20,000 a year is very likely to do)—these do not incur sales taxes.”
Used items may not incur the 9% tax, but I can guarantee you that the price of used items, particularly cars and houses, will rise in tandem with the higher cost of new items. The 9-9-9 plan will not be implemented in an economic vacuum....
Used items are currently exempt under state sales taxes.
You’re right, the demand for used items might increase, which would cause their value to go up.
But that’s not really an argument against Cain’s plan is it?
That’s like avoiding having kids, because you’ll have to change their diapers. The long term benefits of having children far outweight the temporary problem of changing diapers.
The long term benefit of getting rid of the current 90,000+ page tax code far outweighs problems like used items going up (imho).
What did Churchill say about democracy? “It’s the worst form of government, except for all the others that have been tried.”
I know the plan isn’t perfect, but compared to the current system it’s a definite step up.