Wednesday, October 12, 2011

Bracing for Harder Times. The 9-9-9 Tax System Would Kill Fixed Income People

There's not much talk about what Cains 9-9-9 tax system would do to those of us living on SS. It would mean a cost of living increase of 9% on anything bought. I can't even fathom how I'd survive paying 9% more for everything.

I can't even imagine how businesses, buying goods wholesale, to resale, would survive, if they had to buy those goods with the added sales tax. Would they recuperate the costs by charging 9% more when the item was resold? Then consumers buy it for 9% higher, meaning an overall 18% hike in the price? Boy.

Or what about small contractors purchasing for building? Do they pay the sales tax on those supplies they buy everyday to build? Would this not mean they would try to purchase those products outside the US, to avoid the sales tax? Paying 9% more, for small businesses, that purchase wholesale for resale, or people that buy products, to build things, would be a job killer. I know many box businesses sell their products on consignment and don't purchase them outright to then sell in their stores.

Bracing for even harder times.

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