NickyJ
Retired Narrator
"I thought it was the price of a pizza when I first heard it."
Huntsman-1 ; Cain-0
Huntsman-1 ; Cain-0
Cain's 9/9/9 plan
- Thread starter Archbob
- Start date
GhostWriter16
Deity
Agreed, 9% sales tax would only be OK if it was the only tax, but then you need to find a way to make it non-regressive.
civver_764
Deity
Sales tax is inherently regressive..
Archbob
Ancient CFC Guardian
You can exempt food and tax luxury items which the rich are more likely to buy.
As was said above, sales taxes are inherently regressive.
Someone with £1,001,000 buys a £1000 TV with 10% sales tax.
- He gets a TV and only 0.01% of his left over money turns into tax.
Someone with £1100 buys a £1000 TV with 10% sales tax.
- He gets a TV but 100% of his left over money turns into tax.
That's why sales taxes are something to avoid...
Cheezy the Wiz
Socialist In A Hurry
Well this is the same guy who said that poor and unemployed people only have themselves to blame for not being rich and employed. This guy might actually be more insane than Sarah Palin.
civver_764
Deity
@FAL: So its ok to target the rich but not with a progressive income tax??
Archbob
Ancient CFC Guardian
Our tax system, if you look at actual stats, is already progressive.
The idea is that that rich people are more likely to buy these things and buy more of these things. Things like big-screen TVs are not necessities.
Thoughtful Thug
Deity
He's an Uncle Tom... just kiddin.
I find him more entertaining than previous sales men like John McCain.
I find him more entertaining than previous sales men like John McCain.
Is there any analysis out by the CBO or some other organization that confirms this? This sounds like utter fantasy to me.
Bootstoots stole my thunder by hinting at the exclusive vs. inclusive sales tax calculations. I would assume that Cain's plan would implement a 9% inclusive tax (and gradually increase this to lead to the national sales tax), so that the 'actual' rate that most Americans recognize (the exclusive rate) is somewhere around 10%.
What's funny is that other organizations that have grinded through the calculations suggest that a 23% inclusive tax is too low to be revenue neutral. More realistic calculations put the figure around 30% inclusive or higher, which corresponds to nearly a 43% exclusive tax rate.
Archbob
Ancient CFC Guardian
Your assuming he's not going to cut spending.
Let me rephrase my question then: what is the gap between his tax proposal and the current expenditures? His plan will bring in less money than the current tax structure. So not only do you have the already large deficit, but you are increasing it by slashing revenue.
What's going to get cut then? To my knowledge, none of the candidates have actually named specific programs and amounts that will be cut that will amount to matching the deficit under the current system, much less one that will slash revenues.
Ajidica
High Quality Person
- Joined
- Nov 29, 2006
- Messages
- 22,482
What would he cut in sufficient amounts?
The only things worth mentioning are Defense, SocSec, Medicare, and Medicaid.
He can't cut into SocSec too much, or the cranky old white people that make up a large portion of the TP will defect to the dems. I know that if a Republican harmed SocSec, my staunchly republican grandparents would become Democrats in a heartbeat.
Cutting medicare also alienates old people.
Defense is a easy whipping boy, but you can only take so much out of it.
All that is left is Medicaid, and the dems and urban leagues would fight tooth and nail over that.
In this enviroment cuts on the level Cain would need are a political impossibility.
So we're gonna charge 9% on Yatchs and Gulfstreams. Brilliant!
Then the rich better buy these items at a clip unheard of before. Also, you're punishing business by making their goods unattainable by only a handful of people.
Archbob
Ancient CFC Guardian
More common things like name-brand shoes, tv's, computer, video games, etc. Stuff you don't need to survive.
Luxury items generally are only affordable by a handful of people anyways.
Also, i'd probably increase taxes on alchohol and tobacco, legalize weed and tax that really high a well.
That doesn't mean it's not regressive. The poor end up paying a greater proportion of their wealth in tax than the rich when buying non-essentials.
shadowplay
your ad here
Actually, the 'national' sales tax in Canada is 5 cents. The remaining % you're paying is the provincial sales tax, which varies by province (Alberta has none, it's 8 cents in Ontario, I think the maritimes have the highest)
mangxema
I
I'm sure Ron Paul must have....
