Posted on 10/16/2011 6:21:56 PM PDT by Hojczyk
You have been told about 12 times in this one thread what you are far from comprehending and you are still, apparently, far from comprehending it. Several posters took the time to post long and detailed information that very thoroughly has answered every objection you have made, and then some.
That you still are not getting it speaks volumes.
Businesses can write off everything they buy with one condition: the goods have to be purchased from an American company. Otherwise, no deduction.
are they elgible for Medicare or Medicade?
Part D?
Do they collect Social Security in addition to a Pension?
I don’t think these programs will be changed as part of the 999 plan.
Also, I am sure that the concept will need some fine tuning and these would be areas of consideration for seniors and families at the lowest end of the spectrum.
On medicine and food only certain items should be exempt-the tax should apply to viagra, non-essential groceries and booze!
JMHO
Even a basic high school economics course covers the "hidden taxation" baked into prices that Cain's talking about.
David Gregory is a powerful, mainstream press gatekeeper and he's a blithering idiot.
Well, that’s two accounts that David Gregory (punk) is a drunk. I’ve seen and heard him sober in WH briefings though and he was still as dumb as a fence post.
>>> Businesses can write off everything they buy with one condition: the goods have to be purchased from an American company. Otherwise, no deduction. >>>
And I’m not sure that will hold up as written - due to the fact that it probably violates some trade agreements and due to some other practical and logistical issues that would take thousands of words to describe. But it’s an interesting part of the plan.
I’ve never heard Cain say pries would go down. I believe he said taxes would go down, and everyone would be paying their fair share. Revenues would increase because business would pick up and jobs would be open to more people. The savings on capitol gains and income would increase when the income tax is phased out. Great for the investor!
I Would like to know how this would affect home ownership however. A large advantage of buying a home is the interest paid deduction.
We are so used to the current mode of taxation that people are naturally a little skeptical of change. But remember you would get your full pay minus only Social security withheld. That is my understanding anyway.
It has been a long day, so I hope I didn’t garble anything here.
It would be a shame if it didn’t. It’s one of my favorite parts of the plan.
Thankyou for your comment.
The only deduction for business costs is equipment replacement. That is it. This is fine if you are a heavy equipment business or have a business that utilizes equipment, but everyone else will see a big increase in the cost of doing business. It sounds good, but when you actually add it up, alot would be paying more than the current cost of doing business.
In turn, those costs will be reflected in the price of goods and services that we the consumer will now have to pay a brand new 9% more for. It just doesn’t add up.
>>> It would be a shame if it didn’t. It’s one of my favorite parts of the plan. >>>
It’s not as sexy as it sounds for practical reasons. There are certain classes of electronics and trucks and equipment and so on that simply is not made in this country anymore - but American businesses need and purchase these goods. Now, if this provision were to exist, then shell American companies would be set up as the end point seller of these products to get around it.
And this alone would not bring these products’ manufacturing back to America. Not without a huge rollback of the EPA and OSHA and the NLRB as well. Now, if we had this or the FAIR tax system plus a rollback of these idiotic bureaucracies, then American goods would come out of the woodwork again.
>>> It would be a shame if it didn’t. It’s one of my favorite parts of the plan. >>>
It’s not as sexy as it sounds for practical reasons. There are certain classes of electronics and trucks and equipment and so on that simply is not made in this country anymore - but American businesses need and purchase these goods. Now, if this provision were to exist, then shell American companies would be set up as the end point seller of these products to get around it.
And this alone would not bring these products’ manufacturing back to America. Not without a huge rollback of the EPA and OSHA and the NLRB as well. Now, if we had this or the FAIR tax system plus a rollback of these idiotic bureaucracies, then American goods would come out of the woodwork again.
When the baker buys flour from the flour maker, he'll be paying a 9% Fed Sales Tax that HE NEVER PAID BEFORE. etc etc etc.
Not so. American business to American business purchases are EXEMPT.
You can’t be serious?
MR. GREGORY: But where do state taxes go? You’re saying they’re going to be repealed?
MR. CAIN: If you–with the current structure, you have state taxes, right? So with this new structure, you’re still going to have taxes–state taxes. That is muddying the water.
MR. GREGORY: How so?
MR. CAIN: Because today, under the current tax code, state taxes are there if they have it. If they don’t have a state taxes, they don’t have it. It has nothing to do with this replacement structure for the federal tax code.
In other words his 999 doesn’t take into consideration that Americans will be hit by double taxation.
All David G did, was bring it down to the lowest denomination.
2+2+2= 6
Mr Cain says no, the answer is 4 because he doesn’t count the 3rd 2.
This is not even a rational plan.
I can see what you mean. I’m interested to see where this all goes. It seems one of the biggest hurdles has been to get everyone talking about throwing out the existing tax codes in a real way and that’s getting started now.
All you have proven Marty is that you and David Gregory have the same ability to comprehend economics.
Which ain’t diddly.
Great post, I think, though now I am totally confused. What do you call the tax system we have now? I thought it was a retail sales tax.
9% Business Flat Tax
Gross income less all purchases from other U.S. located businesses, all capital investment, and net exports.
They can also write off capital investments and net exports.
You make Gregory look like a rocket scientist.
Is there ‘double taxation’ now if you live in a state with an income tax? Is that ‘double taxation’ because you pay a federal income tax too?
Seriously, you’d probably stop bumping into things all the time if you installed a little window where your belly button is so you could see better.
>>> I can see what you mean. I’m interested to see where this all goes. It seems one of the biggest hurdles has been to get everyone talking about throwing out the existing tax codes in a real way and that’s getting started now. >>>
Amen, it is getting started and that’s encouraging. What is discouraging is how many so called conservatives have a David Gregory understanding of reality, which is to say, none. I’ve owned numerous businesses, some good and some failing - and over 30 years it has become evident how tax and regulation strangle the whole dynamic of the once free economy. I’ve also bought enough kinds of equipment and vehicles and office gadgets and hired enough people to have a good feel for how certain policies will interact with reality.
It is so pathetic to see folks complain about our tax code and IRS and then go diving back to the safety of that evil system every time something radical comes along. So so sad.
I would actually be fine with the 9% not being on food. It would allow people who are on fixed incomes to have a bit of relief. Clothing I am not so sure. You can buy clothing at second hand stores and garage sales.
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