http://thehill.com/video/campaign/187809-cain-most-people-will-pay-less-under-9-9-9
Most people will pay less is not true. The 9% national sales tax plan has two major flaws. Firstly, it would be paid in addition to any state sales taxes. Secondly, it's major selling point is that the national sales tax would only be paid on new goods, meaning that you could avoid it as long as you don't purchase groceries, medicine, school books, etc. So in effect, middle class families and those on a fixed income would receive tax increases on the goods they purchase as well as losing deductions like mortgage interest and school loan interest.
Critics say state and local taxes on goods would come on top of Cain's 9 percent sales tax, leading to unsustainably high prices for many Americans. Additionally, critics claim his 9 percent income tax would hit many of the 47 percent of households which currently do not pay federal income taxes because they don't make enough money.
Cain said people can switch to used goods in order to avoid his 9 percent sales tax. And he said seniors would benefit from his plan because of cuts to taxes on their dividends and investment income.
Sometimes it's funny to watch people who think they are climbing on a bandwagon when you can clearly see it's a trainwreck.
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