Posted on 10/13/2011 9:59:12 AM PDT by SaraJohnson
If you have a family of four with an income of just under $50,000, they could end up paying more under the Cain plan. Currently, they are taxed around $3,850 in income tax. Under Cain’s plan, they would be taxed at 9 percent or pay $4,500. That’s $650 more. Although the family would save almost $4,000 in Social Security taxes, it would have to give up the child tax credit worth the same amount. Furthermore, it would pay an additional national sales tax of 9 percent on everything purchased, including groceries and clothes, which totals about $2,000. That means under the Cain plan that family could end up paying $2,725 more.
(Excerpt) Read more at abcnews.go.com ...
and that is precisely the problem with 999.
Oh really? Prove it. Show me the numbers that prove that.
“Are you saying your son is not paying his fair share?”
He pays the taxes called for under the tax code.
The best attribute of this plan is it opens the door to have a rational debate about the existing structure.
Oh oh, now everyone is going to get pissed.
Prove what leftists will do with a first step of establishing their right to a national sales tax in the future? Were you born yesterday?
I agree 100%. All Democrats and most Republicans think that the government in the USA is too small and doesn't control enough of the economy. Cain's plan takes us a giant step toward their goal.
You said he pays 0 and then gets a credit. That means he doesn’t pay.
That then means I definitely would be paying 17.3% Sales tax and more than likely more as the city wants to raise their portion. I would not be happy paying this.
That’s my point - under Cain’s plan you do no pay taxes on dividends from any of those plans.
This would advance the Left from sin taxes to the Federal right to impose total sales taxes. There is a huge difference.
“What about retirees who are not contributing to Social Security out of their pension. Sounds like they get really screwed.”
The way I see it is they lose their privileged status. They have been paying 15% less “tax”. Am I wrong?
The tax revenues would lose another $ 200 billion per year if it exempts the food. It is a foolish plan and political disaster. You cannot win elections when you are telling the 50% of the population who pay zero taxes after filing all their deductions under the current tax code that they have to pay a mandatory 9% taxes on their income with zero deductions and an additional 9% national sales tax on every item they purchase including the basic items such as food and clothing.
That's ONE of the problems with it. Another is that a sales tax is a wealth tax and opens up savings to further depredations of government. There are a lot of truly awful consequences of this plan.
Current taxes < 9% of gross income, then you lose. Or Current taxes > 9% of gross income, you win. SInce the current Payroll tax is 15.2 % of gross income you are likely to be paying less.
The only issue is will you lose that 6.2% by paying a national sales tax. First after all the regulatory taxes and fees are removed from business we should actually see a decline in prices, it could turn out to be a net gain for you, at the worst a wash.
The fractured argument about providing a new pipeline to revenue that would be certain to go up. Boner said last night that there are 5000 changes in the tax code every year, these are not deigned to cut your taxes.
The whole code could be written on a single sheet of paper, putting thousands of tax lawyers and tax accountants back in the work force.
If they decide to spend more than they make, you would know immediately because your taxes went up visibly. That is what elections are for. Plus he wants a two thirds majority in both houses to raise taxes.
Now in reality you can ignore the 9 9 9 plan altogether, there is no way the establishment will voluntarily give up all their secret sources of revenue. Else how could they all go their broke and leave rich?
But just the thought of trashing the entire TAX code sends a tinkle down my leg.
You lose money constantly by means that you can blame anyone but Congress. They add fees or regulatory compliance expense to industry which the consumer will ultimately pay for. The hardest thing to try and explain to most people is the fact that corporations do not pay tax, they collect tax for the government.
Example; You make widgets at a total production of 75 cents, you sell that widget to the public at $1.00. Government bureaucrat notes that there is a big widget market (Think Cigarettes) so they say maybe we should put a special tax on those widgets, so they decide they should themselves make a profit of 25¢ on those widgets. Now ask yourself will the widget still sell for $1.00? If not, then who will be the loser? Of course the Widget manufacturer could do like Solyndra and figure to make up the loss on volume, but I think we all know the price of the Widget will have to increase by at least 25¢ and likely more because he can then blame the government and pretend to have a clear conscience.
I run a mom and pop business and pay 15% of gross profits every year in payroll taxes. Some years I pay very little income tax, but that 15% is a constant. How do you do it?
aye I bet you lived on the streets, have you hell, you lived in a house growing up I bet, I bet you had parents didn’t you?
You moving your family cross country are you and are you going to pay for all of them?
Those are working are going to help the elderly who are poor, how is that exactly when you will see those who live on a few hundred in the last few years of life when they now have to pay state tax at 8% and then now a 9% on top.
You can support him as I do but lets get one thing straight right now.
Don’t ever talk about what I should do to my or my wife’s family when you have no idea who or what they are or what they have seen just die.
Especially if they spend some of their income on foolishness like food, fuel, etc.
The real downside:
Even though Cain intends the 9-9-9 plan to be transitory, does anyone actually believe that once we have a federal sales tax and an income tax in place at the same time the greedy scumbag, Big Government politicians will ever eliminate either one?
The professional pols in both parties will never let go of a new source of revenue to pay off pals and buy votes.
On the other side of the equation - 49% of the country not paying fed taxes at all - gone.
Illegals now paying taxes through the sales tax.
Drug dealers now paying taxes through the sales tax.
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