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Posted on 10/17/2011 2:40:44 PM PDT by sklar
Proponents of 9-9-9 (and the FAIR tax) claim that prices will go down because of the reduction in tax on producers, but I wouldn't count on that. Any business will be happy to use the change to increase its profit margins.
Under the current system, taxes, which are a cost of production, are embedded in the price of a product. Under 9-9-9 part of that cost is moved to the point of sale. The net price out the door will not change. The list price of the product will fall 9% because of less embedded tax cost.
Really? And exactly what are those embedded taxes that will magically disappear with 999? Can you name one other than the tax on profits (go ask GE how that works for them)? Will property taxes disappear? Will the State's unemployment and disability tax go away? Will all of the costs of regulation compliance vanish?
999 is foolishness. Cain's "get rid of the EPA" is actually a plan that would work. Perry's claim to dramatically reduce regulation will go even farther without penalizing my savings and causing riots in the vast Entitlement Community.
You seem to have a problem with the idea that people ought to pay their own taxes, rather than voting to force someone else to pay them. In what sense do you consider yourself a conservative?
Those are the same commie idiots that bawl over a tree.
The whole premise is fraud and whoever promotes it is a tool.
Calculation of effective corporate tax rates by the Cato Institute as reported in the Wall Street Journal:
"The excessively high U.S. corporate tax rate reduces economic growth by discouraging both domestic capital formation and inward foreign direct investment. Less investment means slower wage growth and reduced living standards over the long run."
You mislead people when you claim that a company like GE is a typical American corporation.
The fact is that taxes imposed on businesses in the United States are astronomical compared to other countries, and we are literally killing our domestic production and killing the hopes of our grandchildren to have a decent standard of living.
“All I see is false information being put out as a fact.”
All I see is someone putting out their situation and trying to understand how 9-9-9 will effect them.
It's the system that we have today that was designed for those seniors that is killing us. We CANNOT get things fixed for the future WITHOUT affecting seniors. Yes, it sounds harsh and cold - but the reality is that the system they're using is the reason we're in the mess we're in today.
But the pensioner would still pay the sales tax.
BTW, can anyone confirm whether this includes rent? A lease on a car? Etc?
I frankly trust art laffer over you, considering he helped write the plan. If you don’t know who he is, get up to speed, then rejoin the debate.
The net burden of the feds on the prices of everything purchased, is where the 22% comes from. There are innumerable hidden taxes and fees sprinkled through out the economy that cain and other fair tax advocated want to eliminate with a consumption based revenue system.
Unfortunately in the sound bite media era, a full description of the fair tax is impossible, thus the need for 999 as a step.
Employer's half of Social Security, there's a solid 7.62% reduction in wages... Capital gains taxes paid on short-term interest and investment income (which is significant for most of the larger corporations) for another.
Need some more?
What do you think is going to happen to seniors when the whole kit and kaboodle collapses?
If we nominate him, and the Dems/Media are able to paint 9-9-9 as a "dangerous half-baked scheme" WE are screwed.
If 9-9-9 is deeply flawed, we will get SLAUGHTERED in 2012!
Hasn’t it been recently stated that about 50% of Americans pay no federal income tax?
I don’t think they will be pleased about a candidate who says they start paying 9% sales tax, and 9% income tax.
I wonder in Cain’s 9-9-9 was initially another of his “jokes” which was taken seriously?
your assuming that competition wouldn’t force the full tax burden reduction on producers/service sector providers to roll prices back to the actual pre-sale net cost/tax reduction level. That would only happen if there are barriers to entry.
your assuming that competition wouldn’t force the full tax burden reduction on producers/service sector providers to roll prices back to the actual pre-sale net cost/tax reduction level. That would only happen if there are barriers to entry.
The business surge caused by the reduced business tax and the repatriation of overseas funds woukld likely soften the marketplace and ease the transition effect as inventory washed through the system.
Elimination of the payroll taxes would be an immediate effect also on wage earners and the self employed. This would help offset the impact of the transition period.
Some short term upheaval would be inevitable. Markets are intelligent and react to change, however, they are not instantaneous.
It’s more important to win than anything else. So slandering someone else’s plan is just a necessity if that brass ring that has your name on it looks like it might go to someone else.
Those of us that are truly “middle class” are going to get bent over once again no matter what because everyone believes their cause is just and the vast middle is the easiest place to hide taxes.
So paying $25K - $40K a year in income taxes, then add Social Security then sales taxes aren’t enough for everyone else as long as they don’t have to pay squat.
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