I think it is clear that Cain didn’t really think through this, nor did he expect to be the frontrunner (and the plan gaining real scrutinity).
Anyway, since it introduces new tax (sales) with no real protection of keeping it at 9%, it has zero chance of getting traction.
GOP will control congress, so president’s job is to sign whatever House and Senate agrees. Dems will filibuster everything, so nothing will happen.
999 was a nice talking point for a while, but let’s move on.
Cutting spending and lowering taxes is good enough for now.
GOP should use the opening Reid gave them (changing senate rules and using nuclear option) and expand nuclear option and passing everything with majority vote (repeal ObamaCare, and tax reform).
I plan on running this comment on every 999 thread I come across. I am not afraid of the 999 plan and here is why. The very first thing to understand is the current tax system will be abolished. This is how I understand the plan works. I’ll round out numbers to make it easier to understand. Today I gross $1000 per week. FICA/MED deductions is 7.5% plus employer match is 7.5% and income tax withholding is 10%. Total deductions from my pay is 17.5% so my net pay today is $825.00.
Under the 999 plan my gross pay increases by the amount of the employer match of 7.5% (because that always was my money) and gross is now $1075.00 per week. My new income tax deduction is 9% so my net take home under 999 will be $1075.00 minus $96.75 or $978.25. Under Cain’s 999 plan my weekly take home just went up $153.25 per week!
Even with the tax write-offs I was able to claim I still managed to owe money to the IRS every April. Not under the 999 plan because there will be no more IRS!!!! A whole government agency eliminated!
Now onto the 9% national sales tax. We will be saving money there too and here is how. Presently the people who make the food and products we buy pay taxes which they pass along to us. These corporate/proprietor rates are higher but let’s just use a 25% tax rate. Under the present system an item that sells for $100 has the $25 tax imbedded in it along with the profit the seller makes. Since the new business/corporate tax rate is going to be 9% the savings of $16 can be deducted from the cost of the product and that $100 product can now be sold to me for $84.00. After I pay the 9% national sales tax the cost to me is $91.56 instead of $100.
Now I am not a business person and do not fully understand economics, pricing theories, etc. and what I’ve presented here is very simplistic and basic, but if I understand Mr. Cain’s 9-9-9 plan as I’ve described here, I see nothing but good things. If I am wrong here in my calculations, please let me know.
It seems to me that the big fear is the government will increase it to 15-15-15 or something but if protective measures were locked in that shouldn’t happen. I have to take Mr. Cain at his word that this plan of his is revenue neutral and that it would supercharge our economy which would increase jobs and further growth. He also claims that the national debt will be paid off within 10 years under this plan.
WHAT IS NOT TO LIKE?
If there's anyone out there who thinks the payroll component will be kept at 9% needs their head checked as well.
OK, Bachmann made a lame joke. Big deal.
No it is not. That is the good little GOP propaganda line we have heard since the 1980s. The problem is we cut taxes and we NEVER get the spending cuts. You will never get any serious restructuring of the US Government as long as you leave the build-in invectives to tax and spend in the current tax code untouched. Without fundamental reform to the tax code, all you are doing is the exact same thing everyone since Reagan has done, tinker around the edges without accomplishing anything lasting.