Would Cain's 999 Plan Get Rid of State Sales Tax?

[Birdlady]

I'm trying to find more information on this and I am hearing conflicting stuff about it. Does anyone know whether or not your state would continue to collect their own sales tax on top of the national sales tax? In the county where I live, we have a 6% sales tax, so with Cain's plan would we be essentially looking at a 15% tax on everything we buy? I'd imagine yes we would have both the National sales tax and the regular state sales tax.

Also would this 9% national sales tax apply to all food, clothing? Currently in PA we do not pay any sales tax on clothing, so I just wanted to make sure I was presenting this right to people who think the 999 plan is good.

If there is already a thread about this I missed, then please feel free to direct me there.

Thanks everyone. Cain is really starting to piss me off. The whole 999 thing was funny at first, but now it's really pretty annoying. He sounds like Giuliani with 9-11.

[V3n]

Everything I've read says it's on top of your regular state sales tax.

Like they were saying last night, it's just another pipeline for the government to take more money that they don't have access to today. And does anybody believe it will stay at 9-9-9 for more than a year before it becomes 10-10-10.. 15-15-15.. to 20-20-20 or 30-30-30? Adding a new way for the government to take money is the dumbest plan I've heard, and people are gushing over it because 'it's simple'.

[mrsat_98]

There is no way in he77 the states are going to give up charging sales tax. They so enjoy the playing this game of the state is a military reservation and the people are the enemy on it. To me 999 is an indisputable act of treason.

[bluesc]

It would be on top. It is an absolutely horrible tax plan that would raise taxes on ~90% of the people on these forums and ~90% of Cain's supporters. It would further speed up the process of destroying the middle class.

When he is voted out in 2016? The Democrat will raise it. The Dems have been begging for a national sales tax for a long time.

How, seriously how can raising taxes on the poor and middle class while lowering taxes on the wealthy without cutting spending fix this economy? He doesn't propose any cuts. Literally none. He just talks about raising taxes. Sounds like a liberal huh? He is exactly what they want.

NO sales tax. NO income tax. Drastically cut spending. Balance the budget. Forget Cain.

[gls]

I wouldn't worry about it; Cain is not going to be elected. If he gets the nomination it is 4 more years of Obama.

[cindy25]

a sales tax is harder to raise because everyone pays, and everyone knows the rate

[donnay]

It would be a federal plan on top of the states, is how I understand it.

I would hope people in New Hampshire, who have no sales tax, and no state income tax would not even entertain a vote for this ridiculous tax scheme!

[mrsat_98]

I wouldn't worry about it; Cain is not going to be elected. If he gets the nomination it is 4 more years of Obama.

So which is worse?

[LibertyEagle]

No, it would not get rid of the state sales tax.

[Ronulus]

On top of state sales tax you also have county and sometimes city sales tax. These are usually fairly small percentages but they all add up. In Texas the state sales tax is 6.25% but with local taxes added it's always 8.25% (the max they can charge locally in texas).

Remember phase 2 of 999 is to get rid of income and corporate tax and have a 27% national sales tax. This would effectively increase the sales tax for many to be 30-40%. This means that a new car costing 20,000$ now effectively costs about 27,000-28,000$.

He also says that phase 2 will get rid of the IRS. Yet he doesn't mention that it will have to be replaced with another organization to collect the sales tax.

[LatinsforPaul]

Here in Miami, Florida it would raise the sales tax to 16%

7% State sales tax
9% Federal Sales Tax
16% means you are getting screwed. :eek:

[oyarde]

No , all other taxes still apply , state tax , state sales tax , property tax , state and fed gas tax & sales tax on top of those two taxes etc etc etc

[Dr.3D]

Here in Miami, Florida it would raise the sales tax to 16%

7% State sales tax
9% Federal Sales Tax
16% means you are getting screwed. :eek:

And then add the 9% income tax to that and you get 25% of every dollar you earned, going to the governments. And of course you would also have your property tax to add to that if you own land.

[Birdlady]

Thanks everyone. That's what I thought, but just wanted to make sure!

[Cutlerzzz]

Wonder how much evasion there would be...

[Feeding the Abscess]

Wonder how much evasion there would be...

Demand for used products would shoot through the roof, I'm sure.

[AZKing]

Of course not. This is just like the 'fair tax', which just adds a national sales tax on top of my 9% state sales tax and 3% city sales tax. Next thing you know, there'll be a federal property tax on top of our county/state property taxes...

I can live with a national sales tax... but his plan is just too much. 9% national sales tax ON TOP OF 9% national income tax? Screw that.

[affa]

worst plan ever. and since there is an 'out' for used goods, you better believe everyone will shift to a new grey market for used goods.

as was pointed out in the debate, giving the fed a new source of income is ludicrous. it will be raised soon enough.

[Krugerrand]

Originally Posted by gls View Post
I wouldn't worry about it; Cain is not going to be elected. If he gets the nomination it is 4 more years of Obama.
So which is worse?

Considering that both parties are the same, the best you can hope for is gridlock. So, the answer depends on who controls Congress. With a split House/Senate, it doesn't make much difference. If the GOP (as the party is now) controls congress, you want Obama as president. If the DEMs have control of Congress, Cain would be preferred.

[Krugerrand]

worst plan ever. and since there is an 'out' for used goods, you better believe everyone will shift to a new grey market for used goods.

as was pointed out in the debate, giving the fed a new source of income is ludicrous. it will be raised soon enough.

It's shaping up to be "since there WAS an 'out' for used goods:"

http://www.ronpaulforums.com/showthread.php?322443-Cash-Transactions-Banned-Louisiana-Government-Take-Private-Property-Without-Due-Process

This summer, the State Legislature and Governor of Louisiana passed a law that bans individuals and businesses from transacting in cash if they are considered a "secondhand dealer". House Bill 195 of the 2011 Regular Session (Act 389) broadly defines a secondhand dealer to include "... Anyone, other than a non-profit entity, who buys, sells, trades in or otherwise acquires or disposes of junk or used or secondhand property more frequently than once per month from any other person, other than a non-profit entity, shall be deemed as being in the business of a secondhand dealer. " The law then states that "A secondhand dealer shall not enter into any cash transactions in payment for the purchase of junk or used or secondhand property."

[Matthew5]

So which is worse?

Cain is worse

OK sales tax is 10%. I'd be paying almost 20% sales tax...on top of my state income tax. Man, Oklahoma sucks. lol :p

[donnay]

9-9-9- and jobs-jobs-jobs! Jobs, oh yes, it would create more jobs, more enforcers to put a gun to your head to pay up for this plan. :mad:

[moostraks]

It's shaping up to be "since there WAS an 'out' for used goods:"

http://www.ronpaulforums.com/showthread.php?322443-Cash-Transactions-Banned-Louisiana-Government-Take-Private-Property-Without-Due-Process

bastards...this is almost inviting people to disobey just to thwart their nosey entitlement attitude to track transactions. How do garage sales work down there now? You must have a credit card machine or accept checks with transactions listed if you do it more than once per month? Guess they don't have flea markets either?:confused:

[thehungarian]

Here's a question for Fair Tax proponents. One of the aspects they always tout about the Fair Tax - or even Herman Cain's own 9/9/9 plan - is that it's "revenue neutral". Whenever I hear that term I get sick to my stomach. Isn't revenue part of the problem? If there is no change in the amount of revenue government receives how can we ever expect it to downsize? Shouldn't the plan be to reduce revenue as much as possible to, in a way, force reductions in the scope of government? If the money is not there it can't be funded.

[Keith and stuff]

NO sales tax. NO income tax. Drastically cut spending. Balance the budget.

That's a good plan but the only time that's happen in the last 50 years is when it happened this year in NH. And that's not even completely correct as there is corporate income tax in NH.

[ronpaulfollower999]

Cain is worse

OK sales tax is 10%. I'd be paying almost 20% sales tax...on top of my state income tax. Man, Oklahoma sucks. lol :p


:eek: and I thought my 6.5% tax was bad! At least Florida doesn't have an income tax.