Let me say this as clearly as possible: Voting for Herman Cain is horrible for America.
Let me explain.
1.) 9% Federal Sales Tax
2.) 9% Federal Income Tax (With cuts for the poor)
3.) 9% Value Added Tax or (VAT).
I’m only going to talk about the first two, because that’s what’s relevant to most people reading this.
Let’s start with the 9% Federal Sales tax.
What do you pay for sales tax in your state? Here in Texas it’s 8%.
States impose sales taxes so they can generate revenue to fund the state’s budget. Herman Cain’s plan doesn’t touch this.
So now, he wants a 9% Federal Sales Tax. A 9% sales tax is extremely high to begin with, but then, keep in mind this is on top of your preexisting state sales tax.
In Texas, that would mean an effective 17% sales tax. (8% + 9%)
So for example:
Say you wanted to buy a cheese pizza for $10.00. That’s .80 cents for your state sales tax. Then add another .90 cents for your national sales tax. Your 10.00 pizza is now $11.70.
You say, $1.70, so what? Let’s try it on a 20,000 dollar car. That’s $1600 more dollars for the state, then $1800 more for the federal sales tax. That’s another $3400 dollars!
If that doesn’t convince you, look at your federal tax refund that you got this year. Under Cain’s plan, there are no refunds. So if you got one, your taxes are effectively 0%. If you didn’t get a refund, take how much you paid out of your income (as a percentage) and it’s probably less than 9% of your gross income.
The rich currently pay much more than 9%. People who make 200,000 or more will see an effective cut in taxes while the middle class and low income will see a 9% increase.
Now, Cain said today that he would not throw the poor under the bus.
His taxes would increase the number of homes that are below the poverty line. So he’s making a safety net for the poor, giving cuts for the rich, and adding a 9% increase on the middle class.
Less than 20% of America’s population is self employed, but the self-employed make up 2/3rds of the millionaires in this country. That means the millionaires and business owners will pay less taxes. The idea is that this stimulates growth and creates jobs. But let me ask you something:
Do you think increasing taxes on sold products such as gas, phones, groceries, school supplies, clothes, and toiletries by 9% will increase consumer spending? Probably not, the more you buy, the more money get’s taken from you.
Do you think putting more money in the pockets of the rich is guaranteed to solve our issues? Probably not.
You can not vote for Herman Cain and come out ahead. It’s a win-win for the rich, and a lose-lose for the middle class.
I support Romney, but this plan is so dangerous to Americans I’d rather you vote for anyone else. It’s a dangerous and awful idea. Please don’t vote Herman Cain.