Meet The Candidates: 2012 GOP Thread

[Slingin Sammy 33]

Originally Posted by saden1

Of course it would have an impact. Sales tax in states like Washington which has a 9.8% sales tax would have to be adjusted otherwise every time you go buy anything your tax bill bill be 17.8% which is quite regressive for the poor and the middle class. 22 states have a sales tax of at least 8%....17%+ taxes on sales? You try that shit and you're going to have real nice tea party on your door step real quick!

I haven't done detailed reading on the 9-9-9, but at first pass this phase (Phase 1) is very similar to FairTax (where Cain is ultimately going), what will happen is with corporations/manufacturers/distributors having a lower corp tax rate (or no corp tax under FairTax), the embedded cost for taxes within a product will be forced out by the market. An item that previously cost $ 100 + say 8% state sales tax = $ 108 for item. Under FairTax, the cost of the item would be reduced by slightly less than the Federal Sales tax, so that $ 100 item would now cost $93 + 8% state sales tax + 9% Federal Sales tax = $ 108.81. I'm not exact on the numbers/percentages but that's the concept.

Keep in mind payroll taxes & medicare taxes (which are highly regressive) and fed income taxes are gone. IRS is greatly reduced, tax loopholes gone, underground economy is now taxed at point of sale. Prebate checks are sent out to all valid SS card holders in US to cover for essentials using current HHS poverty level guidlines.

Americans For Fair Taxation: Americans For Fair Taxation

Herman Cain Rebuts Misleading Ad Against FairTax...