The 999 plan is not about numbers- it is about percentages- which result in numbers and so if you take one of the percentages out of the equation,it does not necessarily result in a lower federal revenue number- and so I raise the question- why do we need three elements to this equation?
Is there a point to the national federal sales tax other than to tax those who are not making an income- the unemployed, the disabled, and those living on a fixed retirement amount - and to "tax the rich" more than others. Other than that, the sales tax is levied on the same sectors as those taxed by the other 2 nines.
The sales tax lowers the value of the dollar as the cost of consumer goods is increased by 9%. The sales tax 9% will potentially lower business profits by raising costs of wholesale purchases resulting from an increase in the cost of freight- and by decreasing consumer spending power. Business profits generate the number on which the 9% business tax is calculated. If the business pays the employee more to compensate for the inflated cost of almost everything caused by 9% sales tax- the number used to calculate personal income tax increases by the same amount that that number used to calculate business tax decreases. This is true with or without the 9% sales tax.
Without the 9% sales tax, all dollars retain their spending value. Since business no longer have to pay a tax calculated on the number of employees and wages paid to those employees, businesses have more capital for hiring new employees and that decreases the number of unemployed who then increase the number who pay a 9% tax personal income tax. It still leaves other unemployed people not paying a tax but a good portion of those people are retired or disabled. What is the reason for taxing the resources of these people especially when it might slow down job creation by reducing the spending power of those individuals and thus keep more people in the unemployed segment?
The "999" slogan rings like equality for all, but the federal sales tax conceals a "tax the rich" ideology when the guiding ideology should be job creation. The federal sales tax could potentially result in less consumer spending and therefore fewer jobs.
While the 9% business tax eliminates the unfair advantage of businesses that hire under the table- the federal sales tax re-introduces the unfair advantage for system beaters with the likelihood that a non-taxable under ground market for consumer goods will develop or expand under this system and compete with consumer goods that are sold by businesses that play by the rules. This will create the need for a government bureaucracy designed to catch the cheaters and funded by the taxpayer.
A national federal sales tax creates competition between the federal government and the states. Will some states have to lower their state sales tax in order to compete? If the federal government decides to raise or lower the federal sales tax- that impacts the sales taxing policies of all the state governments. I do not think that is a good thing for state sovereignty.
A 99 plan combined with a more specific federal plan for reducing federal spending than Cain has thus far offered could be streamlined for job creation without a hidden class warfare ideology.
This still leaves other questions unanswered such as the financing of social security and for constitutional purists there still remains the issue of the constitutionality of income tax. In this election candidates should have a long term plan for realigning this nation with the constitutional model created by our framers- or to say why they do not believe in that model.