Cain's website says a 9% sales tax period. It doesn't say on new goods only. So while I could see if you bought a used powersaw from your neighbor then you wouldn't pay tax on it. But buy a used car from Ford and you would. Buy a used pair of pants from Goodwill and you would. Buy an existing house and you would. In short, a tax on virtually everything you buy.
Cain has specifically stated it would not apply to used items or housing.
And I doubt that the states and cities will be willing to give up their state and local taxes so add that on top.
Seniors on Social Security. The seniors have spent their lifetime paying the payroll tax, but now they are beyond those years. They have no direct benefit from the abolition of the payroll tax. However, they will now have to pay an extra 9% on everything they buy, so for them the plan seems a net fairly strong negative. And without the seniors, Cain will fail and so will 999.
Do I misunderstand? Did I miss something? Cain fans please reply (I basically like Herman a lot!).
I’d gladly pay a tax on my purchases, which I control beyond necessities, in exchange for not only a lower personal income tax rate, but a rate that is the same for everyone and the demise of the tax code, which would get rid of lobbying for deductions, etc.
Know why Libs DON’T want a national sales tax? Because it gives the power of the purse to the people. They can easily and directly affect how much money the federal beast gets simply by changing their spending habits.
Libs hate that. They don’t want people to have a better means of starving the beast. They want to put people in the box of having to earn less income if they don’t want to pay more taxes.
An Obama guy said as much, too.