Talk of The Villages Florida - View Single Post - Where's The Outrage?
Thread: Where's The Outrage?
View Single Post
 
Old 10-12-2011, 07:57 PM
Guest
n/a
  
Posts: n/a
Default
Quote:
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'.
Cain's plan is not a VAT though. It's a Federal Sales Tax. I guess you would pay the $900 bucks extra to the Feds. But just to remind you, you've only paid 9% on your income, so you have more money available to you.