[PapaNew]

Right, except I'm of the understanding that the plan subtracts the purchase price from US companies at each stage of the supply chain, which would have the effect of a one-time-only tax I believe.

The biggest problem with the sales tax is the constitutionally-protected income tax. Until the 16th Amendment is repealed, the sales tax will be and ADDITIONAL TAX not a replacement tax. The 16th Amendment must be first repealed before a sales tax is created.

[mylife]

Even after the 16th is repealed, the new 9% tax is an additional tax on currently taxed existing savings.

[mylife]

Even after the 16th is repealed, the new 9% tax is an additional tax on currently taxed existing savings.

There must be an exemption for current savings.

[Eagle of Liberty]

Right, except I'm of the understanding that the plan subtracts the purchase price from US companies at each stage of the supply chain, which would have the effect of a one-time-only tax I believe.

The biggest problem with the sales tax is the constitutionally-protected income tax. Until the 16th Amendment is repealed, the sales tax will be and ADDITIONAL TAX not a replacement tax. The 16th Amendment must be first repealed before a sales tax is created.

You are correct. The sales tax portion of the 9-9-9 plan is NOT a VAT, meaning that is a point of sale tax, not a tax that occurs at every stage where "value" is "added". Currently, the total sale price of an item includes 22% of embedded taxes, mainly passed on corporate taxes. So, in effect, you are already paying this ADDITIONAL TAX, it is just hidden.

I completely agree on repealing the 16th Amendment. What this plan does is eliminate our current monstrous tax code and replaces it with a 9% flat tax. Eliminating the tax code is step one in repealing the 16th Amendment.

Lastly, the 9-9-9 plan eliminates other current taxes including the payroll tax and the estate tax and it reduces tax rates while widening the tax base.

[Darnright]

>The biggest problem with the sales tax is the constitutionally-protected income tax. Until the 16th Amendment is repealed, the sales tax will be and ADDITIONAL TAX not a replacement tax. The 16th Amendment must be first repealed before a sales tax is created. <

Exactly. Hasn’t Cain repeatedly stated the first thing that would have to happen, before a “999” plan could be put in place, would be for the 16th Amendment to be scrapped?

[firebrand]

Except, as I mentioned later, companies tend to incorporate increased expenses into the cost to the next guy in the chain.