The 999 Tax Plan is explained simply by Herman Cain.

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By Jeffers Dodge 10/19/2011

The 999 Tax Plan is explained simply by Herman Cain.

How this will effect lower income people? Will it lower prices to offset higher taxes? Yes. The embedded taxes incurred durring production of a product will no longer add to the price of the goods and services. The result: lower prices due to competition.

There will be no tax on the purchase of used goods.

There will be no payroll tax paid by the employer to the government as a cost of hiring an employee. The employer will have a choice of either passing that savings onto the customer or giving the employee a raise or using it to buy down debt or expand their business. Further, the FICA tax will no longer be taken out of the employee’s check which can be considered also as an automatic raise.

Every one including the non-working poor, will see a reduction in the price of goods that they choose to buy. If they want to buy a luxury item then they would have to pay the tax but the item will have a lower price.

In other words inflation would be reduced, the dollar would be strengthened and unemployment would wiped out. This would relieve a lot of pressure from the national debt and capital would start flowing again making it easier for banks to make loans to future homeowners and business.

Does the 999 plan hurt the elderly? No. Why? Because they will no longer have to pay taxes on social security income or dividend income. And again, the purchases they do make will cost less because of the elimination of the hidden ‘tax attacks’. Also, remember, when you buy used products you do not have to pay taxes.

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