Talk of The Villages Florida - View Single Post - Where's The Outrage?
Thread: Where's The Outrage?
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Old 10-12-2011, 07:19 PM
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Originally Posted by djplong View Post
In another thread, someone metionad about how much money you'd pay in taxes to buy a car under the 9-9-9 plan.

It got me thinking.

If I buy a car for $30,000 (bottom line) and I sell it years later for $10,000, there's a big difference between a VAT and a sales tax.

Under a sales tax, I have to pay $900 on that $10,000 sale.

Under a VAT, I pay nothing since I sold the car for less than I paid for it. VAT, for those who don't know, means Value Added Tax. In short, if I buy something for $100 and sell it for $120, I pay tax on the $20 - the 'value added'.
Yesterday in explaining Cain's 9-9-9 plan on t.v., he or another person speaking for it said that the 9-9-9 plan does not call for the 9% sales tax on used cars or goods. It's only on new purchases.