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Question about 999 plan
#1
is the proposed 9% sales tax a national tax, and it comes on TOP of the state sales tax?
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#2
space-time wrote:
is the proposed 9% sales tax a national tax, and it comes on TOP of the state sales tax?


Yes, but I believe pizza is exempt.
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#3
Cain's plan is in reality a Value Added Tax, isn't it?

I build cars.
I buy steel + 9%.
I buy tires + 9%.
I buy electronics + 9%
I buy upholstery + 9%
I buy glass + 9%
I buy paint + 9%
etc.

So when I sell the car to you, I need to recoup my additional costs, and then of course, you add another 9% to your purchase price.
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#4
Sales tax is a state tax revenue stream. It stays. That third 9 is giving a lot of conservatives pause too. Cain's response is that you have to look at your bottom line. Individual components might go up or down. He proposes to eliminate payroll taxes too. For the self-employed, that is a 15.6% increase in take home pay. It is not clear what happens to the employer contribution for people working for private employers.
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#5
don't think too hard about it. it supposed to be simple, thats the point.
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#6
Sounds like a good way to curb consumption in a consumption and service based economy to me.
Just what we need to kick start the economy - more sales tax.
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#7
BCam wrote:
Cain's plan is in reality a Value Added Tax, isn't it?

I build cars.
I buy steel + 9%.
I buy tires + 9%.
I buy electronics + 9%
I buy upholstery + 9%
I buy glass + 9%
I buy paint + 9%
etc.

So when I sell the car to you, I need to recoup my additional costs, and then of course, you add another 9% to your purchase price.

So you are making the case that tax increases are passed on to consumers? Missed your posts arguing against raising taxes on businesses.
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#8
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#9
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#10
BCam wrote:
Cain's plan is in reality a Value Added Tax, isn't it?

I build cars.
I buy steel + 9%.
I buy tires + 9%.
I buy electronics + 9%
I buy upholstery + 9%
I buy glass + 9%
I buy paint + 9%
etc.

So when I sell the car to you, I need to recoup my additional costs, and then of course, you add another 9% to your purchase price.


it is value ADDED tax, you don't pay 9% tax on something you already paid 9% tax on. Nothing is taxed multiple tax, as far as I understand the VAT (again, value ADDED tax)
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