would the Sim City plan, aka 9-9-9, kill new car sales?

pocketfullofshells

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Cain said if we buy used, no sales tax on the sale...

so a new a new 2012 Ford Fusion for lets just say its 25,000, a Used 2011 costs 20,000 today

Now change tax code to 9-9-9....
the new cars cost just went up 9%

New Business idea..Buy New cars...Drive them to my lot..sell them for 1000 less then the new ones...and sell them as used with 50 miles on them...and no tax...pocket 1000 for each sale.

Also what about a home...if I buy a home that someone else lived in does that mean I pay no sales tax...( nice since a 300,000 means 53,000 in taxes with no Mortgage Deduction anymore)

I could make a killing building homes for people, living in it a week and then selling it to them.
 
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Cain is obviously in need of a staff of people to advise him on policy decisions or laws he would make. It is a good thing that once a person gets elected they then build a staff. A candidate who is trying to go in the right direction but fumbling is better than a president who is already going in the wrong direction and likewise fumbling.

Yes, that kind of rule would be bad for new sales.

If it were a 9% sales tax on all sales it would be bad briefly assuming that there were enough savings on other taxes.

I would oppose it though since once the camel gets its nose under the tent flap there is no stopping it.
 
so a new a new 2012 Ford Fusion for lets just say its 25,000, a Used 2011 costs 20,000 today

Now change tax code to 9-9-9....
the new cars cost just went up 9%
I'll use your numbers....

New Business idea..Buy New cars...
$25k + 9% (not even counting local and state taxes or license and fees) = $27,250

Drive them to my lot..sell them for 1000 less then the new ones...
That resale price would either be $26,250 or $24,000...

and sell them as used with 50 miles on them...and no tax...
OK, so it's now a "used" car, which you paid $27,250 to purchase and are now selling for either $26,250 or $24,000...

pocket 1000 for each sale.
You're going to lose at least $1,000/$3,250 per sale... How do you plan on pocketing a loss?
 
OK, so it's now a "used" car, which you paid $27,250 to purchase and are now selling for either $26,250 or $24,000...

I assume the people "buying" the new cars are actually the dealers and they would be paying wholesale prices. Even buying them from themselves as new they could charge themselves much less than the car was worth so that the tax they paid was on a very small number.

Don't forget that anyone who borrows money to buy a used car will pay a higher interest rate than someone who borrows money for a new car.

Hmmm? Going back to that first paragraph...what is to stop a dealer from selling a new car to any Joe off the street for a mere $200 and then charging that person huge costs for mandatory service contracts to make up the difference? Kind of like when an employer gives an employee free health insurance that is not taxed as income instead of a raise that is taxed as income.

The market will always find ways around this stuff. These attempts by congress to control everything are just mucking around. Then when people avoid being mucked with congress has to engage in the never ending game of whack-a-mole.
 
Werbung:
I assume the people "buying" the new cars are actually the dealers and they would be paying wholesale prices. Even buying them from themselves as new they could charge themselves much less than the car was worth so that the tax they paid was on a very small number.

Don't forget that anyone who borrows money to buy a used car will pay a higher interest rate than someone who borrows money for a new car.

Hmmm? Going back to that first paragraph...what is to stop a dealer from selling a new car to any Joe off the street for a mere $200 and then charging that person huge costs for mandatory service contracts to make up the difference? Kind of like when an employer gives an employee free health insurance that is not taxed as income instead of a raise that is taxed as income.

The market will always find ways around this stuff. These attempts by congress to control everything are just mucking around. Then when people avoid being mucked with congress has to engage in the never ending game of whack-a-mole.


they could only mark it down 2-3%
, still 5% in the hole.
 
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