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I really like Herman Cain but his plan is not something that will work...
He is stating you don't pay the tax on used items....so no tax on a used car?
I don't get it but for groceries, clothes, etc....to me another 9 % is too much...I know on milk, bread there is now no tax, but again an increase of 9%is a lot.
Maybe you need to actually read the plan then decide.
In the long run you will pay far less in taxes then the current system.
Maybe you need to actually read the plan then decide.
In the long run you will pay far less in taxes then the current system.
Dag Nabbit! Everybody including Herman Cain keep saying that but nobody has provided even the most basic example to show me how this is true. Run some 999 numbers for me. Like, if I made 50,000 and had a wife and two kids this is what the current plan and the 999 plan looks like in comparison. Or, a senior on fixed income with gross income less than 18,000 a year. But nobody, not even Cain will do that. Until they or you do, the consensus from every economist who ran the numbers is that 84% of the American public will see a tax increase and the other 16% will see a massive tax decrease. The worst hit will be poor people and seniors on fixe3d income. That's what the economists say. Show me different.
Rather ironic from the party who signed a pledge with Grover Norquist not to raise taxes under any circumstances. Hmmm, I wonder if that pledge applies to one of their own they put up for president?
Unlike a state sales tax, which is an add-on tax that increases the price of goods and services, this is a replacement tax. It replaces taxes that are already embedded in selling prices. By replacing higher marginal rates in the production process with lower marginal rates, marginal production costs actually decline, which will lead to prices being the same or lower, not higher.
Cain apparently is under the delusion that corporations will magnanimously pass on their tax saving to consumers.
That is the same line the government here told us when they were bringing in a 8% goods and services tax. "It's replacing other taxes" bla bla bla. Well , I'll tell you that there was nothing that was less expensive after they brought in that GST.
Another issue that I have not heard brought up in the discussion of the 999 is the incredible costs of administering a plan such as that. Do you realize how many civil servants you need? In a country the size of the USA it would be tens of thousands. Another big problem is the amount of bookwork and accounting that even the smallest business has to do every month. You as a small businessman become the governments tax collector. It makes running a small business a real chore. Replace the hidden taxes??? I'll tell you as a retired salesman that I would WAY rather have the tax hidden. When it's not hidden the customer naturally does not want to pay it. So who pays it? The business ends up eating it and the margins of profit are so slim in many businesses that there is no profit left after you absorb 8% or 9% as cain wants.
In Canada it actually created a huge underground economy. Entire sectors of the economy went underground. Most home contractors were forced to operate illegally because their customers would not pay an extra 8%.
Another effect was that many people just stopped buying things they could do without but would have bought if there was no 8% added to the price.
Bringing in that added value tax in the USA will create problems of gigantic porportions.
Dag Nabbit! Everybody including Herman Cain keep saying that but nobody has provided even the most basic example to show me how this is true. Run some 999 numbers for me. Like, if I made 50,000 and had a wife and two kids this is what the current plan and the 999 plan looks like in comparison. Or, a senior on fixed income with gross income less than 18,000 a year. But nobody, not even Cain will do that. Until they or you do, the consensus from every economist who ran the numbers is that 84% of the American public will see a tax increase and the other 16% will see a massive tax decrease. The worst hit will be poor people and seniors on fixe3d income. That's what the economists say. Show me different.
Rather ironic from the party who signed a pledge with Grover Norquist not to raise taxes under any circumstances. Hmmm, I wonder if that pledge applies to one of their own they put up for president?
Another simple thought is..If your a person or family that doesn't buy a lot of "things" you don't pay that 9% sales tax.
Maybe as a country we should learn to spend less
Also if you think about how much the products wil drop because the manufactures cost will be less due to less tax on their heads....In the long run prices "should" drop,in the short run they will probably not so in that respect a company that lowers its prices will get more business and that their incentive.
Quote:
Originally Posted by lucknow
That is the same line the government here told us when they were bringing in a 8% goods and services tax. "It's replacing other taxes" bla bla bla. Well , I'll tell you that there was nothing that was less expensive after they brought in that GST.
Another issue that I have not heard brought up in the discussion of the 999 is the incredible costs of administering a plan such as that. Do you realize how many civil servants you need? In a country the size of the USA it would be tens of thousands. Another big problem is the amount of bookwork and accounting that even the smallest business has to do every month. You as a small businessman become the governments tax collector. It makes running a small business a real chore. Replace the hidden taxes??? I'll tell you as a retired salesman that I would WAY rather have the tax hidden. When it's not hidden the customer naturally does not want to pay it. So who pays it? The business ends up eating it and the margins of profit are so slim in many businesses that there is no profit left after you absorb 8% or 9% as cain wants.
In Canada it actually created a huge underground economy. Entire sectors of the economy went underground. Most home contractors were forced to operate illegally because their customers would not pay an extra 8%.
Another effect was that many people just stopped buying things they could do without but would have bought if there was no 8% added to the price.
Bringing in that added value tax in the USA will create problems of gigantic porportions.
Maybe people in high tax states should get off their a$$es and start voting out the bums...who's fault is it really.....The people who vote!
Listen I'm not for raising taxs on anyone but at least this 999 plan will get all those "NON-TAXPAYERS" to put a little something into the country.
Again for people in high tax states..Wake up and vote out the bums who keep raising your taxes.
I hate taxes but we're all in this together, and when you look at the size of the debt, you have to realize that it's time for EVERYONE to plan on paying. The 1% really can't do it all themselves.
1) If this were to be implemented, I'll likely consume much less, thus screwing the gov't out of their tax revenue anyways.
When the economy was providing jobs 70% of GDP was based upon consumer spending what do you think is going to suffer more, government or the national economy?
2) No capital gains tax? Time to invest what's saved in #1!
Thats all fine and dandy, for folks who have capital to invest. Your random argument assumes that many Americans can lower consumption of necessary goods and services enough to offset the increase price due to the higher tax on those goods and services not to mention how that reduction in consumption will continue to depress employment.
3) Buy used from Goodwill.. these 2nd hand stores will see a surge in sales.
Another great way to boost production, and employment, brilliant in fact! With everyone rushing off to buy used goods, who needs workers to make, ship, or sell new ones. Brilliant I tell you, simply brilliant!
4) National sales tax can't be avoided by buying online.. except maybe from other countries.
How in god's name are you going to avoid a NATIONAL sales tax by buying online? The reason why you don't pay sales tax on online purchases is because you are buying products that are not sold in your STATE! A National sales tax by definition won't allow you to avoid paying sales tax in fact it will insure it.
The main point lost in the sales tax focused discussion is that income tax rates are cut and flattened. Those deductions and loopholes used by the wealthy are eliminated. Tax collections should improve through simplification and less abuse of the massively complex tax code.
Cain deserves credit for proposing a bold change. Every other politician proposes tax tweaks, which are simply bandaids that further complicate the tax code.
The main point lost in the sales tax focused discussion is that income tax rates are cut and flattened. Those deductions and loopholes used by the wealthy are eliminated. Tax collections should improve through simplification and less abuse of the massively complex tax code.
Cain deserves credit for proposing a bold change. Every other politician proposes tax tweaks, which are simply bandaids that further complicate the tax code.
With a 9% national sales tax, it's still a net increase for the "middle class" and working poor. THEY would end up paying the greatest percentage of income.
We've paid enough. It's time those who got rich off of us kicked in their fair share. When he comes up with a 1% national sales tax, and a 14% income tax, call me.
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