“We” is corporate America which produces products for sale. (The tax only applies to new merchandise.) It will be freed from much more overhead than the 9% sales tax. As the overhead goes down, competition will force prices down.
I agree that the eliminated taxes can reduce prices but;
- even if ALL income taxes, including FICA, are eliminated I don’t think prices fall but 8-10%. Does 999 eliminate FICA? If not, prices can fall but not 9%. Also note that reduced costs can show up in lower prices, better wages, or increased ROI... all benefit the individual but don’t have to all show up in prices.
- looking at prices alone is not a wide enough view to analyze such a change. A much better evaluation is done by examining real prices [ie purchasing power.] Would you rather earn 100k and spend 90k or earn 120k and spend 100k? Some on this thread are saying they’d rather earn 100 and spend 90.
Well I am speaking of folks who have run the race and are retired.
If this is rankling my feathers, Cain has no chance in the general election. So folks who have worked all their lives and paid taxes get %9 more tax? and the folks that didn’t work get empowerment zones?