Quote from CaptainObvious: You only need to understand republican ideology to make sense of it. Taxing individuals...good, very good. Taxing corporations...bad, very bad. With Cains plan tax on individuals will go up, while corporate taxes will be slashed. All of course on the premise that this will somehow create jobs. These are the same dopes that say the consumer drives the economy, but now we're going to add 9% in cost to every single item we purchase to an already cash strapped consumer, and this is going to grow the economy? Utterly jaw dropping stupidity. wow. i just saw this post quoted. you make good sense. makes me wonder how you got put on ignore. i am going to take you off ignore right now.
corporations always charge what the market will bear. it has nothing to do with the tax they may pay. in a free market competition is the only cap on prices.
And your point is what? It's no news that corporations pass it on to the consumer. Just explain to me how adding 9% to the cost of every single purchase will drive consumer spending. I hope you're not going to suggest that the savings from corporate tax reduction will be passed on to the consumer in the form of reduced prices. And historical evidence has already proven that lower tax rates do nothing to create jobs. So where's the benefit, other than putting more money in the pockets of the boardroom boyz?
The national sales tax as I understand it would not be applied to food, basic clothing, school supplies, medicine or gas. In other words, it would only hit the poor if they are buying things they should NOT be buying. They are also talking about giving tax credits to poor neighborhoods to offset the tax. I don't think I like that idea as I can count all the ways from Sunday that can get corrupted. The sales tax is fair because the poor would be exempt from it for the most part and the rich can't get around it with tax shelters and offshore trusts. As it stands now, the rich pay almost nothing in taxes and never will because they don't have "earned income". They OWN.
If you cut income taxes, people will spend more. We saw that very clearly when Bush gave out the bullshit tax rebate checks that went straight to Best Buy. We are a consumer nation Captain, no amount of sales tax is going to keep Americans from the mall. Trust me.
As you understand it? Just where are you getting this understanding from? I have yet to see anything that identifies what you're claiming. Far as I've seen and heard it's an across the board tax on everything. Show me the specifics in the plan to support your "understanding".
the rich could easily get around it by not spending. ever hear of warren buffett. he like to brag that he lives in the same house for 50 years and drives an old car. he would pay less than he does now. i could see a case there the worlds richest man, if he were frugal, could escape all taxation. i guarantee you i would pay less with a sales tax. i can see all kinds of ways to beat it. wouldnt it be easier to just do away with the tax shelters?
But the reality is taxes will go up for the majority of working class people. They will end up with less money in their pocket, not more. http://thinkprogress.org/economy/2011/10/05/336649/cain-999-analysis-deficits/ From the article: Linden also found that someone in the bottom quintile of earners â who currently pays about 2 percent of his or her income in federal taxes â would pay about 18 percent under Cainâs plan (9 percent on every dollar they make, plus 9 percent on every dollar they spent, which would likely be close to all of them). A middle-class individual would see his or her taxes go from about 14 percent to about 18 percent. But someone in the richest one percent of Americans would see his or her tax rate fall from about 28 percent to about 11 percent.
Yes, the billionaires may not spend, but a majority of the people making 500k to 10 million a year spend like drunken sailors. I have spent enough time in NY and LA to see how these people spend. Or I should say over spend. You can't get rid of tax shelters because most of them are offshore!!!! We have no jurisdiction in other countries. One of the most famous is the Cook Island Trusts. Look it up.