http://www.msnbc.msn.com/id/44921197/ns/politics-decision_2012/ who will pay more? the people who spend more money on new goods. the sales tax only applies to people who buy new goods. not used goods . that's a big difference that doesn't come out.
>> for those 30 million americans who don't pay income tax , including 16 million elderly americans , you concede they would, in fact, pay more.
>> not the elderly. that's two different groups. let's talk about the elderly. you don't pay taxes on your social security income . it replaces the capital gains tax . many of the elderly make money off of their investments, they won't pay that. tax on dividends and tax on income generated from investments, you only pay once. so in that sense, it helps the elderly.
>> the other defect in the plan comes from fellow conservatives who say, you got some problems here. this is what "the wall street journal " said about it this past week. the real political defect, the "journal" writes, of the cain plan is that it imposes a new national sales tax while maintaining the income tax . mr. cain 's rates are desubjectively low but the current income tax was introduced in 1913 , with a top rate of 7% amid promises that it would never exceed 10%. by 1918 the top rate was 77%. the politics of a national sales tax is bad enough on its own. a 9% rate when combined with state and local levies would mean a tax on goods of 17% or more in many places. the cries for exemptions would be great.
>> don't combine it with state taxes. this doesn't address state taxes. if you add them together, yes, you would get that number. this is a replacement structure. these are replacement taxes. they're not on top of anything. we replace capital gains tax . we replace the payroll tax . we replace corporate income tax . replace personal income tax . and replace the death tax .
http://www.msnbc.msn.com/id/44921197/ns/politics-decision_2012/