Wednesday, January 11, 2012

Return of the Pizza Plan

9-9-9 is a joke.  Unfortunately, Herman Cain (and his supporters) do not realize this because he's back promoting his bad idea.  If you recall, the pizza promotion, which also doubles as an alleged tax plan, calls  for the adoption of a  9% flat tax on personal income; a 9% flat tax for  corporations, and would create 9% national sales tax.  Democratic and Republican tax experts agree that Cain's 9-9-9 plan would increase taxes for the lower and middle class, but significantly decrease the tax burden for the richest Americans.  When will a Republican promote a plan that helps the other 99%?

A big problem with Cain's plan is the creation of the 9% national sales tax.  If you create a national tax, then consumers will not only have to pay the national tax, they will also have to pay state sales tax.  For example, the Peach State only charges a 2% sales tax on groceries.  Under Cain's pizza plan, Peach State residents would now have to pay 11% in sales tax - a 9% national tax and 2% state tax.  The cost of milk just went from $2.03 to $2.21, assuming the retail price of the milk was $1.99.

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