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 ...
It falls under elimination of double taxation. Retirement income is already taxed once.
It is impossible to boil down mathematical caculations into the political sound bites of a National campaign. He’ll lose against Obama running on 999. 999 is easier said than done.
Lying by omission is still lying.
Cain also eliminates their medicare and payroll taxes therefore they pay less, not more.
So once again the Obama protection agency at ABC is knowingly lying about 9-9-9
This crap being peddled by ABC news takes the normal libtard approach that economics operates in a static vacuum as a zero sum game-- i.e. if you raise cigarette taxes by $1 per pack, it will produce revenue equal to $1 x the number of packs we expect to sell next year with the current rates.
In the real world, economics never works like that. People adjust their habits and behaviors to avoid or minimize taxation.
Corporations would do no different. The tax savings would mean (among other things) producing more in America and moving jobs back here where taxes are lower. Consumer prices would have to fall, not only to combat loss of sales from increased sales tax, but to reflect savings from reduced corporate taxes.
Consumers, even at the low end, might actually be better off than they are now.
To make the thing politically salable, the plan would include a rebate or tax refund going to those below a certain income threshold to the point that just about everybody would be getting refund checks (or direct deposits). This would be true even for those on the high end (for their first $40K or whatever threshold is set).
It might actually become increasingly popular as taxpayers would be getting in on a monthly bonanza of what they normally only see during tax refund time, albeit in smaller chunks.
Cain is a first rate mathematician. He understands the details of these things far better than your average English major writing for the MSM with a leftist agenda. Given the opportunity (and from what I've seen so far), I believe he can also explain it better as well!
I think it is too late now for him to divorce himself from 999. He has painted himself as the 999 guy, unfortunately.
I pay no payroll taxes because I don’t get a paycheck, I only pay taxes on the income recieved from the business, and my rental property is the same way.
This is not an accident, I structured my life to minimize my federal tax burden, I also purposely structured things to avoid any involvement what so ever with the government beyond property taxes.
Of course I am one of those evil rich people that Obama loves to hate, since our household income is greater than $200,000.
Hey Marie how much do you have, do you have the means for your family to move in with you from across the country and pay for them as well?
mmmmmmmmmmmmm
stop being so petty and understand that not all people have money
and don’t start about cutting spending, we don’;t eat out, we don’;t order take out, we pay within our means and we live on a small budget but we take nothing.
My MIL lives the other side of the country, her husband just had strokes which killed him, she has no money, has only two meals a day and can only afford half of her meds so you have no clue WTF YOU’RE TALKING ABOUT so stop being so sarc.
All he has to do to modify the plan is to have generous exemptions. This is how Steve Forbes’ flat tax worked. Problem solved.
Get the facts straight from Herman Cain:
http://www.hermancain.com/999plan
Herman Cain 999 calculator:
http://www.nerds4cain.com/Blog/archives/723
How disingenuous. What about retirement SAVINGS? Those will be taxed at an additional 9% (at least until it's raised to 23%) thus double taxing previous income.
For a realistic view of how it works:
■If you get a paycheck from an employer, then your employer pays half of your payroll taxes behind the scenes. It’s part of your pay that’s hidden from you in the current system. This tax goes away under the 9-9-9 plan, so the money will start showing up in your paycheck (yes, your paycheck amount will go up under the 9-9-9 plan by 7.65%).
■Amount not spent is the amount you don’t spend out of your income, so there is no sales tax on it.
■The maximum effective tax rate under Herman Cain’s 9-9-9 plan is 17.19%. This only occurs if you don’t put any money into savings and spend every dime you earn.
■When doing your calculations for your current income, don’t forget that the payroll tax (which is 15.3%) will be eliminated under the 9-9-9 plan. Consequently, the maximum tax increase anyone at the low end of the income scale might see under the 9-9-9 plan is a mere 1.89%.
Go HERE for the most accurate and well described calculator I've seen of the plan - which I've read thoroughly.
“He’ll lose against Obama running on 999”
I don’t think so. This plan is a boom for small businesses and cuts corporate loopholes. That is the BULK of America.
It sure doesn’t help that some Republicans don’t mind help carrying the water for the leftist media though.
I want to know if things like the 18.4 cent per gallon federal tax on gasoline would go away under Cain's plan.
But like I've said before, it may not be the best plan, but it's a start, and it gets people talking and thinking about what our other options might be. We all know we can't continue down the same path. Cain is the only one proposing something drastically different. Still waiting for other/better ideas to surface. (And certain people on FR keep bashing 9-9-9, but they certainly don't offer any better solutions.)
My Son makes just a tad under 50K and can claim every deduction listed. He winds up paying zero and gets a fed refund.
Yes you would. In Texas, under Cain’s 999 plan our consumption tax would be 17% making it easier for liberals in the state to advocate getting rid of a State sales tax and moving to a State income tax.
It was the first thing out of my son’s mouth when I told him about Mr. Cain and his idea of a 999 tax. He said “you mean I would have to pay 17% sales tax???!!!” I seys to myself, wake up sarajohnson. This is a very bad idea.
I’ve been hoping someone would raise that point as well.
People are already essentially paying a 35% national sales tax (give or take) because corporations are passing those costs along to their consumers. Once that tax is reduced by 75%, the price of goods and services will drop. Which means that even with the addition of a sales tax, people are likely to be spending less to buy stuff.
She has no car, no luxuries like eating a chocolate bar, she cries her eyes out when she can’t give her grandkids a present at Christmas and birthdays.
Now she will have a 9% tax on her.
///
yes.
liberals will accuse Cain of wanting seniors and minorities to eat cat food...
but, the company pays 31% less in taxes.
honest business, unlike Obama lackeys like GE,
will pass most of that on to reducing prices.
granny pays 9% more. but NET, is about 22% LESS.
Cain has a Math Degree. And a Computer Science Masters.
but 31-9=22 is simple enough even for me to understand.
and again, 999 is just to “begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax.”
and DTogo in post #21 makes GREAT points, i didn’t know about.
So will a promise of a significant tax increase make him run out and vote for the Hermanator?
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