I have brought this up to Cain on twitter. In some areas of California there is a 10% sales tax. His plan means 19% tax on everything we buy.
Plus, a national sales tax is just too easy to add one more penny. No one cares about one penny, right?
If he takes away the mortgage interest deduction, we will be punished for owning a home with property taxes. It will further harm the housing market because people will say, bad market, I have lost equity, why own now?
No, Cain's plan simply means a 9% federal tax on everything you buy. You will be paying 19% total not because of Cain, but because CA has an outrageously high 10% sales tax. Neither Cain nor any president can do anything about that.
>>In some areas of California there is a 10% sales tax. His plan means 19% tax on everything we buy.
So move somewhere with lower taxes, if you aren’t getting the benefit of your local taxes.
>>Plus, a national sales tax is just too easy to add one more penny. No one cares about one penny, right?
No, which is why tax increases get voted down routinely around the nation.
>>If he takes away the mortgage interest deduction, we will be punished for owning a home with property taxes.
With a tax rate of 9% you’ll be saving so much money, and the rate is so low you wouldn’t miss the deduction anyway. It’s like you’re jealous of the guy who just had them stop hitting his toe with a sledgehammer when you just had them stop hitting your tow with a framing hammer, because he got more benefit from the stoppage.