Skip to comments.Two Calculators to Determine How Much You'll Pay Under Herman Cain's 9-9-9 Plan
Posted on 10/19/2011 2:43:07 PM PDT by SeekAndFind
I have discovered two websites that provide that tools for you to determine how much you'll save or pay if the Herman Cain 9-9-9 Tax plan were to be implemented.
1) INCOME TAX CALCULATOR
Here's the Tax Calculator Comparing the INCOME TAX you would pay using the current tax code against the 9-9-9 plan. You must have Microsoft Excel on your computer:
2) SALES TAX CALCULATOR
Here's how much you pay for the price of goods if the NATIONAL SALES TAX were implemented ( this takes into account your state's sales tax):
The federal income tax started out at 1%. just saying.
Yes, so, by all means, let’s keep what we have now.
Under 9-9-9 my husband and I would save around $36,000 in income tax and the $278.00 item I bought earlier this week would have cost me $266.80 instead of $300.94
And EVERY unit of government can increase ANY tax whenever they want to (subject to any statutory limits that may exist). Just sayin.
We may as well just throw in the towel.
When the goal is to be revenue neutral (while cutting spending to balance the budget), some will pay more and some will pay less.
The principal advantage of 9-9-9 does not lie in who pays less or more.
The most important thing about this change is that it re-orients incentives in the economy in favor of domestic manufacturing and domestic capital formation.
The middle class is dying. Much of our manufacturing base has moved overseas, and the rest hangs on a thread.
The 9-9-9 tax imposes taxes on goods produced by foreign businesses and alleviates taxes on saving and capital formation. Finally, it is something that helps level the field for domestic manufacturing.
It is too late to rearrange the deck chairs on the Titanic. We need to something dramatic to reverse course.
The best thing about 9-9-9 is that it is NOT a “progressive” tax. No more raising taxes on someone ELSE.
“And EVERY unit of government can increase ANY tax whenever they want to (subject to any statutory limits that may exist). Just sayin.”
Exactly, Cain has yet to explain how passing a new tax magically makes all the others go away and never come back.
In the end creating a new tax will always result in paying more in taxes.
He needs to evolve it into a flat tax.
There are so many damn hidden taxes that EVERYONE pays. I would rather pay more in percentage in taxes ALONG with everyone else than to pay a lower rate that is scructured in a way that promotes class warfare.
Better to have everyone have some skin in the game. It is easier to raise a hidden tax that only businesses pay (and pass the costs to the consumer) than it is to try to hike taxes on EVERYONE.
RE: He needs to evolve it into a flat tax
His long term plan (phase 2 ) is to evolve it into the FAIR TAX.
Phase 2 The Fair Tax
Amidst a backdrop of the economic renewal created by the 9-9-9 Plan, I will begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax.
Ultimately replaces individual and corporate income taxes
Ends the IRS as we know it and repeals the 16th Amendment
Ping for later.
THanks for that. I can get to the income tax one..and I can see the difference the % of new goods would affect...but the other spreadsheet is blocked (work computer). I’ll have to do some number crunching on what I actually soend on NEW goods.
The current system does nothing more than empower government. Because Half of All taxpayers have no skin in the game anyway. The Liberals understand this they know that average Americans don’t count up all the hidden taxes in their everyday purchases and the Democrats feed off of that to increase their own power. The current system will always pit the haves against the have nots and empower libearls that is why it is fundamentally unfair. Liberals have no desire to see real people advance in society they need their victim groups so that they can remain in charge of their plantation. The problem is that those us that want to escape that plantation can’t and we get get whipped when we try. Herman Cain’s plan should serve as a catalyst to start a real debate on the role of government in our lives and the corruption that is rife in the current tax code.
The best way to make certain the government doesn’t increase taxes, is to make certain everyone has to pay the same percentage. It is easy for Congress to play politics, grow government, and conduct social engineering when they can pit one group of Americans against another. It is more difficult when tax increases hurt everyone. We need to get rid of this corrupt system.
Our family would save some $22,000 a year in taxes. Add to that the SAVINGS and lower prices for goods. It would truly feel like 1999 again.
We just might be able to buy that new dining set we’ve been dreaming of. Take our first vacation in some eight years ...buy a new car. Might also be able to finally pay off our credit card debt and put something into savings for the first time in TEN years. Give to charity also. We gave that up a long time ago as well.
Nah — oh well. Best to keep to the old system.
I mean, come on — the “Po” need their free diapers.
I need to know — would the sales tax be slapped on RENT? How about utilities? How would all that work?
I doubt it could be added to rent, as that might be seen as a “used” item?
I suppose the 9% would just be figured into the monthly mortgage?
When I start to figure all of this out, it pisses me off. I realize how much we are being OVERTAXED to pay for those who hide out on paying their fair share — rich and poor alike.
>>> I believe the cost of certain services and products will fall in price if the 9-9-9 plans comes to be. Isn’t it logical to think if the corporate income tax drops from 35% to 9% then businesses will be able to roll prices back?
From the Laffer article in the WSJ:
Thus, Mr. Cains 9-9-9 tax base for his business tax is $9.5 trillion, for his income tax $7.7 trillion, and for his sales tax $8.3 trillion. And there you have it! Three federal taxes at 9% that would raise roughly $2.3 trillion and replace the current income tax, corporate tax, payroll tax (employer and employee), capital gains tax and estate tax.
It would appear that about 38% of the revenue from the 9-9-9 plan would be derived from the corporate tax. Looking at the current Monthly Treasury reports, corporate income tax accounts for about 8% of revenues under the current plan. Assigining half the payroll tax receipts brings the corporate share to 26% of revenue. I’m not sure how they will be able to roll back prices.
And the best way to make sure everyone pays the same percentage is to go to a flat tax rate for everyone. let's just say 8%. So if you make just $100, you pay $8. If you make 10 mil you pay 800k.
Given such a system, how many IRS agents would we need then. Obviously very few. Don't believe the fair tax nonsense that says it will eliminate the IRS, it won't. It can't. The feds would still need many many IRS agents to make sure that huge sales tax is being paid on everything. Nothing would create more incentive and opportunity to cheat on taxes than a huge sales tax on consumption. You would have goods going out the back door and ending up on eBay all over the place.
I have read some of the fair tax plan and I'm hear to tell ya it's a bunch of bunk clearly conceived by someone that does not have a clue how the real world works when it comes to taxes. Supporting this nonsense is a mistake.
“I have read some of the fair tax plan and I’m hear to tell ya it’s a bunch of bunk clearly conceived by someone that does not have a clue how the real world works when it comes to taxes. Supporting this nonsense is a mistake.”
You should read more of it. ...Like I said, I’ve leaned towards a flat tax over a national sales tax, but Cain’s ideas are sound. The problem with Forbe’s plan that Perry has decided to take up is that it contains built in deductions and rebates that amount to redistribution of wealth, no different than any other tax rebate scheme that gives money to people who didn’t pay it in. There is also no reason a flat tax can’t be manipulated into another regressive tax structure, and a big IRS reenters the picture.
I agree. I’m not jumping on board with Perry/Forbes just yet.
The only way a flat tax solves the problem is if it remains just that, flat. That is to say NO deductions for any reason. As soon as the concept of deductions enters into it then guess what, the system is no longer flat.
I agree with Gingrich in that the positive part of Cains plan is the promotion of the idea that big changes must be made. It’s clear however that any kind of national sales tax is simply unworkable and unsellable to the American people. The Fair Tax is a concept that only works in text books and the minds of economist’s but in the real world it’s an unworkable disaster.
Lets see the details of the Perry/Forbes plan.
I'm no Art Laffer, who I admire, but then the 9-9-9 plan really is a 9-9-26 plan. If that's the case Mr. Cain has been esposing that there is no baked in taxes in products, but there's only a single tax that the consumer pays only on new goods.
I really can't see how a manufacturer who buys raw materials for what ever he manufactures is exempt from paying those taxes. If Joe the Baker buys nuts from the store to make a cake, he pays 9% tax on those nuts. When he's done with his cake the patron at the bakery buys the cake and pays 9% on the cake. He can't exclude the price of the nuts in the cake and say the tax is already paid.
I'm starting to see that the Herman Cain tax plan which sounds simple really isn't and if that's the case it's going to go down in flames.
I’m confused...probably should know this. I’m married, my wife does not work and my kids are beyond the age I can claim them as dependants. Am I “Married Filing Jointly” or “Head of Household”. There’s quite a difference.
Here is how an accountant explains the difference between Married Filing Jointly and Head of Household...
1) Married Filing Jointly
You can choose Married Filing Jointly as your filing status if you’re married and both you and your spouse agree to file a joint return.
Both of you must include all of your income, exemptions, and deductions on your joint return.
Except in special cases, you’re both responsible for any tax due. For instance, you could be held responsible for all the tax due even if your spouse earned all the income.
So, if your wife earns no income, you can STILL file under this category if you find tax benefits doing this.
2) Head of Household
If you qualify to file as Head of Household, your tax rate will usually be lower than the rates for either Single or Married Filing Separately.
You must meet all of the following requirements:
You’re unmarried or considered unmarried on the last day of the tax year. For the purpose of qualifying for this filing status, youre considered unmarried if you didn’t live with your spouse for the last six months of the year, except if your spouse was absent due to special
circumstances such as business, military duty, or illness.
You paid more than half the cost of keeping up a home for the year.
A qualifying person lives with you in the home for more than half the year (except for temporary absences, such as school). Exceptions: A dependent parent does not have to live with you.