10-13-2011, 12:26 AM
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It's 42
Industry Role:
Join Date: Jun 2010
Location: Global
Posts: 18,083
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Apart from Cain's 9-9-9 being a regressive tax ...
Unless the "sales tax" proposed would be levied on;
- Capital gains sales
- Stocks, bonds and other investment instruments
- Real estate conveyances above median homestead values
The 9-9-9 plan would shift the burden of taxation to the working poor
Also, I have read of no exemptions of taxation on food, medicine and lower to median value rents ...
Quote:
Similar to VAT
http://www.bloomberg.com/news/2011-1...line-beer.html
Also, Viard said Cain’s description of the business tax has been misleading as it is nothing like the current corporate income tax, which applies only to profits of companies organized as corporations. The 9-9-9 regime would operate as a value-added tax, or VAT, similar to those in the rest of the industrialized world, which Republicans have often opposed.
A value-added tax is applied at every level of production on most goods and services.
“The elephant in the room is the fact that Cain is proposing a value-added tax,” said Viard, a former economist at the Federal Reserve Bank of Dallas who says a VAT will be necessary to cover the government’s long-term fiscal needs. “The question of whether the revenue numbers add up is almost secondary to that.”
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