What Could Cain’s 9-9-9 Plan Mean For You?

ABC News ^ | 10/13/11 | Ben Forer

[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.

[SaraJohnson]

In other words - you are NOT a conservative.

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Stop being pitifully lame. :)

I want a flat tax, personally, but this goes to show you what will happen to Mr. Cain during the general election. Papa Bush saw what raising taxes on the middle class did for him.

Cain’s campaign centerpiece assures our defeat if it is shown to raise the taxes on the middle class. He’s left the media to present his tax caculations which is another not ready for prime time move on his part.

[Presbyterian Reporter]

250000 15500

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The Red State example does not appear correct. FICA has a limit, doesn’t it?

[xenob]

I think their math is wrong. How are they getting $2,000 a child? IRS states up to $1000 per child.

[justsaynomore]

That is a lie -

It is right here on his website:

Individual Flat Tax – 9%. Gross income less charitable deductions.

http://www.hermancain.com/999plan

[Marie]

“my MIL is on SS, she is old, she cannot afford half of her meds, and can only buy enough food for two meals a day.”

My mother is on SS.

It sure would be nice if my husband and I were doing better and could afford to help her out more.

Oh wait. That’s family taking care of family and it’s the gov’t job to take care of my mother. I forgot for a moment.

[TomGuy]

Since Cain has offered no tax caculator site to refute this kind of analyses of his tax plan,

Cain said their calculations are wrong.

Cainbots accept his explanation without question.

==

One calculation thread last week said that Cain's 999 would end up with about an annual $285 Billion dollar deficit.

Who makes up that shortfall?

[mazda77]

So what is the percentage of the middle class that can even qualify for the deductions in the first place? I know the lower middle class doesn’t so did you consider that?

[Marie]

You’re awesome, togo!

[Elendur]

Read Cain’s Lips: ALL NEW TAXES!
///
please, don’t you have a shred of honesty in you ?
first your claims of a VAT tax, and now this ?

and again, why are good conservatives here at FR,
so desperate to slime Cain, that they use ABC
and the liberal media to lie for them?!?

this article totally ignores that cutting the business tax by over 31%,
would make everything cheaper NET,
even AFTER the sales tax !

(and, would result in immediate massive new job hiring !)

http://www.freerepublic.com/focus/f-news/2791787/posts
Cain Economic Advisor Rich Lowrie Explains Sales Tax via Twitter
“This is in response to the Bloomberg idiot moderators and everyone else who insists that the 9% sales tax will raise prices.”

(and, this is only phase 1, in the process of getting rid of the IRS and 67,000 pages of tax code...)
http://www.freerepublic.com/focus/f-news/2791979/posts
Phase 2 of Cain’s 999 plan: The FairTax!
HermanCain.com ^ | unknown | Herman Cain
Posted on Wednesday, October 12, 2011 11:34:49 PM by UnwashedPeasant
Few seem to know it, but Phase 2 of Cain’s 999 plan is the FairTax. Cain’s website says the following about the FairTax:
1.) Amidst a backdrop of the economic boom created by the Phase 1 Enhanced Plan, I will begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax.
2.) The Fair Tax would ultimately replace individual and corporate income taxes.
3.) It would make it possible to end the IRS as we know it.
4.) The Fair Tax makes our exported goods and services the most competitively internationally than any other tax system.

[Spunky]

Cain says he would do away with the Income Tax, but he says nothing about doing away with the State and Local Taxes. I already pay 8.3% on everything except food. With the 999 I would be paying 17.3% on everything including food. Ouch! I am not sure how the other 9's would work out for me but think it would be more.

[Beagle8U]

“Retirement income is not taxed under this plan - there is no double taxation.”

Care to point that out on his website? I read it and it doesn’t say that.

[SaraJohnson]

Heck, the specifics of Obama’s Christmas gift ‘Jobs bill’ all poll well. But they wont make the voters happy when they lose their jobs anymore than they were happy with Bush in 2008.

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This is exactly the problem we face with a candidate who has made his campaign foundation 999. Americans are mathematically challenged and do not hear nor understand the reasons behind conservative economics. They don’t even know what the constitution says and means anymore.

Cain’s 999 plan will easily be turned against Cain by Obama’s caculators. It is too complicated to argue in the typical campaign sound bites.

[from occupied ga]

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. ... at means under the Cain plan that family could end up paying $2,725 more.

This isn't the half of it 9-9-9 is an economic apocalypse for retirees and anyone who actually earns money. First the plan institutes a national sales tax WITHOUT GETTING RID OF INCOME TAX. This is an idea that bureaucrats have been salivating over for decades. Anyone want to bet how long it would remain 9-9-9 before it went to 23-23-23 (but only for the "rich" so that they could pay their fair share.) But leaving out the utter insanity of adding a whole new CLASS of federal tax there is the effect of a wealth tax on anyone with actual wealth (savings for you Cain supporters who blindly follow without doing the math)

Take Joe and Fred both who made $125,000 for the last ten years. Joe is frugal and saves. He's saved $500,000. Fred puts every penny on lifestyle. has a couple of hundred in savings. They both have similar families and have paid the same amount of taxes. Joe's savings have already been taxed. Fred has spent his money. Now what happens to Joe when he goes to spend his saved money? He only gets to spend $455,000 because his savings (wealth) are taxed again. Fred OTOH doesn't have this problem because he's spent every penny as soon as it hit his hands.

Now multiply this effect on retirees savings and you'll sw how the ones who actually worked and didn't plan to sponge off the rest of us will get screwed.

Now look at European countries with both income and sales taxes. They are able to plunder 40% - 48% of their GDPs because there is no tax avoidance strategy that works for a sales tax. Contrast to the USA where the government "only" loots 19% of the GDP because of the various ways to avoid income tax. 9_9_9 is economic folly on an unprecedented scale.

[SoJoCo]

I believe 999 eliminates charitable contributions as a deduction. That is probably a killer among conservatives who generally give much more to charitable organizations than do the liberals.

Actually that is the only deduction that is retained.

[justsaynomore]

“One calculation thread last week said that Cain’s 999 would end up with about an annual $285 Billion dollar deficit.”

Even if that were true, and I am highly skeptical from ANY of these numbers coming from liberal media...

What is wrong with less revenue? Just means government has to CUT which is the biggest problem we have anyway. Cain already plans to CUT.

[kevao]

Cain says he would do away with the Income Tax, but he says nothing about doing away with the State and Local Taxes.

No president can do anything about state and local taxes; we live in a federal system.

[Marie]

I said, “In other words - you are NOT a conservative.”

How about you address the actual reason that I said that instead of taking it out of context?

I was explaining that prices would drop, offsetting the 9% sales tax because the corporate tax would drop. If you don’t believe that, then you don’t believe in the free market and you are NOT a conservative.

EVERYTHING that you rebutted with said that opposite. (”Cain’s campaign centerpiece assures our defeat if it is shown to raise the taxes on the middle class.”)

What if it’s shown that it DOES NOT.

How about the point that there would be LESS poor if we had a thriving economy? Fewer people living on low incomes? More opportunities for everyone?

[perfect_rovian_storm]

I guess the lack of ability to read and investigate anything is what they taught you in ‘reporter’ school.

[Jeff Head]

It will not pass in the current congress...but if Cain wins, the likely congress that will come in with him may well pass it very early on.

For me...it is pretty simple.

The 9-9-9 tax is more simple and will save me the cost of an accountant each year. The tax itself will be less for me each year. It will give me more freedom in what I choose to buy and sell and the costs associated therewith.

It will remove worries, concerns and costs associated with trying to protect my inherticance for my children. It will remove the capital gains taxes I pay on investments.

Best of all...it will open up the economy and business in this nation producing many, many more jobs...resulting in more revenue for the government, and allowing this nation to have a much better chance of getting out of debt and bringing in the type of people who will control spending, vote for a balanced budget amendment, and end the liberal spin crazy, entitlement and give away mentality they have used for years to buy votes.

All good things for this nation.

IMHO, Herman Cain has the right attitude and message for renewal and restoration of America, her strength, her economy, and much, much closer adherance to and reverence for her constitution.

With the endorsement yesterday of Art Laffer, for Cain's 9-9-9 plan (Laffer is recognized as one of the brain child's of supply side economics), his momentum continues to rise.

HERMAN CAIN IN 2012 FOR A STRONGER AND RESTORED AMERICA

[from occupied ga]

in the process of getting rid of the IRS and 67,000 pages of tax code...)

Anyone who thinks that once a national sales tax is institutied that the income tax will subsequently be gotten rid of is either a colossal fool or a liar.