What is Reason Number One?
Cain’s proposed “Fair Tax” federal taxation system.
What is Fair Tax?
It is a simple plan.
First, abolish all current federal taxes. Second, impose a blanket national sales tax at a fixed percentage rate. Everyone pays the same, regardless of class. In addition everyone only pays on goods they want to buy.
“Prebates” would buy everyone essential goods so those in poverty will be gifted a decent standard of living. The Internal Revenue Service will no longer need to exist, and would be removed. The tax code will no longer be abused because it will be too simple.
Good idea, right?
Why is this an Un-Fair Tax?
The proposed national taxation rate is 23%.
Healthcare is taxed. Mortgages are taxed. Food and water are taxed. Paychecks are not taxed; you will get every cent that you earn. The federal’s lion share will be taken when ANY goods are bought, ANYWHERE. Herman Cain outlines this himself, under the cloak of propaganda.
For the bottom ninety percent of the population this is a drastic tax increase. For example, those in the bottom quintile will see their taxes increase by 460 percent. Prices of goods will rise by 23% percent, counteracting pay raises, because business will need to keep profitable. People do not win back a piece of their paycheck, they just lose government reimbursement.
Cain claims that his “prebates” will reimburse Americans so they can buy what they need, placing them at the poverty line. Therefore, EVERYONE who does not currently pay above 23% will be driven down to the poverty line. That includes you.
Herman Cain and his “Fair Tax” are will enslave Americans, one overpriced purchase at a time. Americans will just stop spending money, creating widespread deflation and winning Cain a recession.