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Wednesday, October 12, 2011

Herman Cain's 9-9-9

I like Herman Cain with his 9-9-9 idea.  BUT.......
I do not understand why he has to have three tax sources.  It makes no sense to me.

Why? Because any cost of doing business is passed onto the buyer. (i.e. the price a buyer has to pay includes the cost of doing business.)  The buyer also pays the profit that those higher in the food chain get. (Whatever the market will bear.)

So, in reality, corporations don't pay taxes, merchants don't pay taxes, no one pays taxes except those who purchase things.

So, I want to one-up Cain's proposal.  Instead of 9-9-9, why don't we just accept the fact that it is only the buyer who pays all the money needed to run the government.

If Cain's calculation adds up to 27%, getting rid of two of the 9's would result in less than 27%... MORE SAVINGS.

Now, if we could get rid of the IRS and all the tax laws except a "Sales Tax", we all would save a lot of money and get rid of all the parasites that make us do non-productive work. (Like spend time and money trying to abide by tax law.)

Sorry tax accountants, tax lawyers, most of the IRS employees. You've got to go. Wouldn't it feel better to do productive work instead of non-productive work (parasite) work? It might be more fun catching cheaters: lobbyists and cronies that try to cheat others from being able to compete fairly.

Take away the temptation of trying to get favors from our government, and corruption would go away. Corruption would be less profitable than doing things honestly and ethically.

"Income tax would no longer be called "income tax" because the only function our federal government is supposed to do is protect our borders and our national security so that us citizens can do our thing. So, the "sales tax" imposed by the government would be called "Security Tax."

Now, all other functions like building roads, providing public services like public transportation, garbage collection, treating water... etc. would be handled by the States.  So the states would also impose a sales tax to pay for their necessary functional responsibilities.

Just think how cheap things would be after all the parasitic costs are eliminated!  More money in our pockets, more time to do what we want to do.  (I, personally, spend too much time trying to figure out taxes.)

If we just admitted the fact that buyers pay all taxes and provide the profits to the manufacturers, our life would be much simpler, less costly, and happier.





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