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10-12-2011, 08:58 PM
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A good link is below.
"“Relative to regression, no, it is not,” Cain said. “If you take a family of four at $50,000, and $25,000, start with the fact that if they're getting a paycheck, they pay 15.3% in the payroll tax. That 15.3 becomes 9 percent. That's a 6 percentage point differential.”
Cain explained that the proposed 9% national sales tax would only be applied to new goods that change hands and not to the sale of used goods. Asked on CBS’ “Face the Nation” what the impact of that would be on the auto industry, Cain said it would lead to the depletion of the existing inventory of used cars. "And, eventually, people are going to start buying new cars. So that's not a big negative," Cain said.
Cain also insisted that, notwithstanding the new additional 9% national sales tax, the poor would not pay more in taxes. Cain reasoned that the lower individual income rate of 9% under his proposal would save lower-wage taxpayers money relative to the amount of payroll taxes they currently pay. Specifically, because of the differential between the current 15.3% payroll tax rate and his proposed 9% flat individual income tax rate, Cain said "9-9-9" would generate savings on individual income taxes for all taxpayers.
“That 6 percentage point difference makes up for a lot of the sales tax that people will have to pay,” Cain said on CNN.
When asked by CNN’s Candy Crowley if he thought the plan is fair, Cain pointed out that under his plan, used goods would not be taxed.
“Yes, it does sound fair, because of the other point that I'm about to make,” Cain said. “If they need to buy a car or a home or some hard goods that are used, they pay no taxes. So they have an opportunity for them to leverage their income.”
http://politicalticker.blogs.cnn.com...e-under-9-9-9/
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