Wouldn't Citizen Cain's 9-9-9 Plan Discourage Consumption?

[DemocratSinceBirth]

The economy is already suffering from a massive lack of aggregate demand. If you added a nine percent sales tax it would discourage consumption and reduce demand. Here's a quick example. That Ford Fusion Joe Six Pack wants to buy in California with a sticker price of $20,000.00 now cost a whopping $23,600.00 (9.0% CA sales tax and 9% Cain Tax).

Even George Will alluded to this on This Week.

[Turbineguy]

1. It will incourage consumption

provided of course you are using the term in connection with tuberculosis.

[indepat]

2. And think: the vast bulk of all accumulated wealth would never be subject to any tax other than an

initial 9% income tax. Now how special is that? It's peachy special, 'cause it just doesn't get any better than this. :patriot:

[DemocratSinceBirth]

3. It's Also Horribly Regressive

The poor and working class spend all or most of their income. The rich don't.

[indepat]

7. The more regressive the tax, the more Rethuglicans love it and

will support it to the hilt. :patriot:

[dsc]

4. actually it gets worse

He actually doesn't apply sales tax to used items. So in your car example, there would be a heavy incentive (1800) to buy used instead of new. The same would apply with housing. A new house costing 200,000 would have a 18k Cain tax upon it while an existing 200k house would have no such tax.

[greymattermom]

8. some trick so everything is used

that new car has 3 or 4 miles on, so it's really used. the new house had workers sleep in it one night, so it's really used. only a few things like food and underwear would be new and subject to the tax.

[DemocratSinceBirth]

9. Even New Cars Usually Have A Couple Of Miles On Them

.

[dsc]

12. I think they would have to have been pre owned

even new cars do have a few miles (test drives etc)

[former9thward]

13. Houses are considered new if they have had no permanant occupiers.

Mileage on cars does not determine whether they are new or not. If a car has not been titled it is considered new no matter how many miles are on it.

[LiberalFighter]

5. We need to raise the price of all goods that the wealthy buy about 175%.

[phleshdef]

6. A national sales tax could only work if we made the corporations eat the difference.

But that would entail a complete regulation of how much corporations are allowed to charge for products. I don't think hardly anyone would be on board with that.

[Raven]

10. Under 999 there will be a big market for used milk, bread and diapers. :-)

[itsrobert]

11. There will be an underground market

There are many ways of getting around this tax.

[Proud Liberal Dem]

14. I thought that we were all already "taxed enough already"?

Teabaggers? Where are you on this? Hmmmmmmmmmmmm?????? :eyes: Oh, that's right, with Cain. :banghead: