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Will the Herman Cain 9-9-9 tax be added onto what I already pay in state tax?
Although I am not sure on his math for most of his economic plan, wouldn't the 9% national sales tax be added onto the already existing sales tax that a state makes you pay? In my state we have an 8% sales tax, so therefore would a $50 purchase go from a total of $54 to $59?
Now, if I am wrong about this, let me know. This isn't a question that is made up to stir one side, it's just an honest question with how that 9% national sales tax works with an existing state tax.
6 Answers
- TootoyLv 710 years agoFavorite Answer
Yes, it's in addition to state taxes, if there's any. So in California we will be paying a total of 18% in sales taxes. States with no sales tax, like Alaska, will
get the federal 9% sales tax.
- Anonymous10 years ago
Yes and because the last 9 is a Value Added Tax it will be added to what you buy at least 3 and on most items 5-20 times.
Consider the cost of a loaf of bread, the farmer sells the grain to a grain storage company(Silo Company) 9%VAT gets added to the price, the Silo company sells the grain to a broker, 9%VAT gets added to the price, the broker sells the grain to the company that grinds the grain into flour(the Miller), 9%VAT gets added to the price, the Miller sells the flour to the Bakery company, 9%VAT gets added to the price, the Bakery sells the bread to the Wholesale Company, 9%VAT gets added to the price, the wholesaler sells the bread to the Grocery Store, 9%VAT gets added to the price, the grocery store sells it to you, 9%VAT gets added to the local and state sales tax meaning you not only pay 15-25% taxes at the end but you have to add in the 5x9% between the farmer and you.
- 10 years ago
The answer to your question is YES. I'm paying 9% sales tax here in CA. So it will be 18% sales tax under President Cain if I buy any goods or services.
- LauraLv 610 years ago
The federal government cannot do away with state taxes because each state has the right to pass its own laws in that regard. So, yes, Cain could not remove the right of the states to tax. That would be a federal tax on all food and other things on which you might not be paying taxes right now.
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- fishnLv 510 years ago
Yes you got it and no standard deduction to boot on your 1040 the 999 plan is so ridiculous it's laughable. To know surprise 85% of the tea party love it because it's a supper win for the supper rich.
- RonaldLv 610 years ago
you are correct . in il. we pay approx. 10.5 on top of that add 9% and you get 19.% on everything. food will hurt the seniors and poor the most.WHAT A JOKE.
