If someone would actually propose a truly un-exemptable flat rate on every transaction - and I do mean every transaction - coupled with a strong tariff policy, I could see getting behind it. But I'm with you, oldtimer, I fail to see how this simplifies anything. And again, there is no discussion on what big cuts will be made on the spending side.
well, I don't agree, IMHO, the only fair tax is an income tax, but if you wanted a transaction tax, it could be accomplished very simply by eliminating green and going to all electronic cash. Every time you swipe, Uncle Sam gets a cut. And for patriotic Americans, they could have electronic supositories. HELP SUPPORT THE WAR, GIVE EVERYTIME YOU WIPE
It appears that way. "Gross income" is gross receipts minus cost of goods sold. However, Cains website bears no mention of "cost of goods" in his 9% Corporate Flat Tax description. "Gross income less all purchases from other U.S. located businesses, all capital investment, and net exports." http://www.hermancain.com/999plan He needs to clear it up..
I'm not sold on the idea of a sales/transaction/whatever tax either - just saying that if someone wanted to sell me on it, starting with a flat rate, no exemption, all transactions plan would be a starting point. But personally, I don't think there is any purpose served in arguing how to tax without first figuring out how much should be spent.
yeah, well that's the way it is now, you report your gross and then you lie about how much it cost you to produce everything you sold. Like whenever I drive up to Chicago to visit my daughter I always drive by the old CBOT building so I can write it off as a business trip.
no kidding, medicare could be made solvent very easily just by raising medicare taxes until everbody finally says enough is enough. Just pass a law that simply states, medicare taxes must pay for medicare. It's really that simple. Can you even imagine if we had a separate deduction on everyones paycheck marked War Tax?
I don't think Cains proposed definition of "gross income" includes cost of goods sold. I think he intends to redefine "gross income" as stated above. Otherwise, cost of goods would have been included in his list of exemptions. I think somebody needs to clarify because at this point, it's a question mark.
oh, I got ya, yeah that would be crazy, especially for a start up that may not see a profit for years. It's not like they have an extra 9% lying around.
The problem is, they could also have a congressional salary deduction that would probably be about 43 cents, and when they want a raise the news would announce it's going from 43 to 47 cents and no one would care.
The Cain 999 plan will not happen I guarantee it. Might as talk about how you're going to start dating super models, you have a better chance of that happening than Cain's tax plan passing.