[Slingin Sammy 33]

Originally Posted by saden1

Are we talking about the 999 plan or the FairTax? Regardless of which plan we are talking about I am under the impression that they would both eliminate the payroll tax which means there will be no deposits Medicare, Medicaid, and Social Security bank accounts. Ore maybe we're talking about the SS33 hybrid plan?

I am talking about FairTax, this is a documented plan that's been on the table for a few years now. Cain supports FairTax. I haven't read enough about this 9-9-9 to know all the details, but I believe Cain should just go straight to FairTax without all the 999 mess.

Anywho, we could go back and forth with page long posts here but I suggest you go to the FairTax site and take a look at the books I mentioned to read the details of each. They will explain much better than me.

In short, FairTax is simply a replacment for the current system of collecting federal taxes, nothing more. The current estimated percentage of embedded federal sales tax needed to be revenue neutral is approximately 23%. Currently there are approximately 22%, of embedded federal taxes in the final cost of a good/service today. That's how the final cost of an item to the retail consumer only raises slightly with FairTax.

If one thing is fairly certain it is that if given the option of not matching employee payroll contribution most employees would probably choose to count the money and put it in their back pockets much like the airline companies did with the airline surcharge. I am not interested in doing going to do Arthur Anderson accounting here so unless you are fairly certain individuals are going to get that money in their pockets for sure you shouldn't count that money as income.

The SS & Medicare payroll taxes are part of the embedded tax in a good/service. These will be filtered out by the market, if companies want to remain competitive.

To think the FairTax can capture revenue from under the table payments is ludicrous. This is by far the stupidest selling point I have ever heard regarding the FairTax. How are you going to count this money if it's unclaimed?

Remember FairTax is an embedded tax collected at the point of sale. Everyone has to buy goods/services.

What do we do in times of war? Increase that tax rate?

In the case of a declared war, approved by Congress, yes. It's been done before. If not, then POTUS/DoD need to figure it out with their yearly appropriations.