It appears to me those who would pay more are the ones who can least afford it. When asked about citizens receiving Social Security he countered that the capital gains tax is removed and that would offset the sales taxes those people would pay.
A follow-up question of “What about those who do not have an investment income and survive only on their Social Security checks?” was not asked.
That would describe approximately 30 million people and many have a hard time making it to the end of the month. Adding nine percent to their grocery bill could be significant.
He continues to emphasize that the tax will only apply to new goods, but has anyone ever known anyone who purchases used food for consumption?
Food stamp purchases are exempt from state and local sales tax. Would those purchases be exempt from the federal nine percent sales tax as well?
For wage earners his plan will eliminate the Social Security and Medicare insurance (called payroll taxes) deductions from their paychecks, which is not 15 percent by the way. The employee contribution is only 7.65 percent and the employer matches it for a total contribution of 15.3 percent to those agencies.
Those who are self employed do pay the whole 15.3 percent.
The wage earners’ federal income tax will be reduced to nine percent, which many will like, but LOOK! The 7.65 percent “savings” will be replaced with a nine percent retail sales tax on basic necessities as well as choices Does that sound like a good deal? It does not to me.
As other candidates have attempted to point out the 9-9-9 plan provides an additional revenue stream to the federal government that has proven time and again they are poor stewards of the taxpayer’s money.
I also have not heard him explain convincingly that the nine percent would not be increased a short distance down the road when it proves insufficient to fund government, and I am not convinced that the price of “a loaf of bread” would be reduced sufficiently.
I will write about his recent announcement to exempt households with a poverty level income from the nine percent income tax another time. Right now I am not liking that either.