IT’S A VAT TAX, PERIOD.
Marty, you live in Texas. We have a state sales tax. The state tax is 6.25%, but most municipalities add another 2%, making the total 8.25%. Sales taxes are charged only on retail sales.
A VAT is charged on every transaction -- from farmer to processor, from processor to baker, from baker to merchant and from merchant to consumer. A retail sales tax is charged only on the last transaction, sale to the end-user -- it's not a VAT.
The 9-9-9 plan includes a 9% federal sales tax. It would be charged only on retail sales to the end-user -- just like the state sales tax. It is not a VAT.
The only way that is true is if the line of producers EAT the 9% tax.
Do you REALLY think producers all along the chain of production are going to eat taxes? NO ofcourse not.
That is the definition of a vat tax.
The naive nature of the arguement is astounding. Everyone ASSUMES that Repub nd Dum is Congress will actually pass this nightmare. Well Dums will love it. another tax stream. WWhat happened to the Taxed Enough Already.
Apparently that is dead for Tax Me More.