To: OL Hickory
A VAT is a tax on the sale of everything.
Farmer sells wheat? Tax it. Miller sells grain? Tax it. Baker sells bread? Tax it. Restaurant sells sandwich? Tax it.
VAT's are bad.
Herman Cain's plan is a tax on retail sale. Retail only.
It's OK to dislike a 9% retail sales tax, but it is not a VAT.
Also: about 50% of the population pays no federal tax at all. That's not fair. With a retail sales tax, the poor will start to contribute, and they may stop clamoring for the government to spend more, and more, and more.
4 posted on
10/19/2011 7:21:33 PM PDT by
ClearCase_guy
(I won't vote for Romney. I won't vote for Perry.)
To: ClearCase_guy
Herman Cain's plan is a tax on retail sale. Retail only.
That is the 9% sales tax.
I take the VAT question to be regarding the 'corporate' 9%. As a product moves from idea toward retail, are 9%'s added at each stage of production/development in the corporate/company environment? Or does the 9% only apply to the finished product?
And, is that 9% 'corporate' passed on to the consumer by increasing the retail price?
Per other posts, Medicare/Social Security payroll deductions are eliminated, and M/SS are paid out of the general revenue. With M/SS already in financial trouble, how is 999 going to address that?
And what about the annual shortfall/deficit of some $285 billion that some costing organizations estimate would occur with 999?
Cain needs to say more than 'their numbers are wrong' and 'details are on the website' about these kinds of concerns.
16 posted on
10/19/2011 7:47:42 PM PDT by
TomGuy
To: ClearCase_guy
With a retail sales tax, the poor will start to contribute, and they may stop clamoring for the government to spend more, and more, and more. Wrong. All the poor will do is demand increase in welfare to offset the tax. AND THEY WILL GET IT!!!!!
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson