There are a number of ways to accomplish a truly fair system.
One way would be just a flat tax by which everyone would pay the same percentage regardless of income amount.
If the percentage were 10 percent someone who earns $1,000 per year would pay $100 in federal income tax. Someone who earns $100,000 would pay $10,000. And someone who earns one-million dollars would pay $100,000.
Almost any system would be better than the current system which discriminates and applies the law unequally among citizens. The current progressive system is based on the core principles of Marxist theory, plain and simple. With the "rich" being targeted to "pay their fair share" while approximately half of wage earners pay no income tax.
IOW, a very important debate regarding the tax code has been started and Cain is on the right track, all Cain needs to do is be a little less specific and detailed and more flexible to proposed changes.
I like the flat tax. I like Herman Cain. I hope he modifies his tax plan.
9-9-9 is the worst idea I have heard proposed by any of our front runners. The last thing we need in in this economy is a national sales tax. The last thing the government needs is a new revenue stream. 9-9-9 is LAME.
If you will go to the site on the 999 plan, what you describe is step 2. He is basically saying this is a better system, but we cannot get there all at once.
NO national sales tax. Today it’s 9%, tomorrow it’ll be 19% - unless you have an EBT card - then it’s ZERO.
I am sorry but I am not a fan of Herman Cain. The 999 thing is “too clever by half” It reduces an important issue to a marketing ploy, and one that really doesn’t stand up under scrutiny.
Even with Newt Gingrich’s baggage and association with the past, he is by far the best candidate to bring our country back. If anyone truly knows how Washington works it’s Gingrich.
Gingrich plays chess while the other candidates are playing checkers. He may be a bit “old school” but I am getting nostalgic for a bit of that.
The Federal Government has ALWAYS had and used a sales tax. In the constitution it is called a “excise tax”. Today it is applied to alcohol, transportation fuels, tobacco products, vaccines, land-line telephone usage, firearms and ammo and other products and services.
Nothing stops it from being expanded to other products by the legislature.
The federal excise taxes are not added to the bill, they are incorporated in the sales price, but AFAIK, nothing in the Constitution’s definition of taxes stops them from being tallied at the point-of-sale as a separate item, just like the state sales taxes are.
I think there are some positive ways to tweak his plan, it’d doesn’t have to be the 9, per se. The Cain haters though, will then start screaming that he is making it up as he goes along - they could care less if his plan is workable, they don’t want him in office.
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Paul Ryan loves Herman Cains 9-9-9 tax plan
http://dailycaller.com/2011/10/13/paul-ryan-loves-herman-cains-9-9-9-tax-plan/
Godfather of Supply-Side Economics Supports Cain’s ‘9-9-9’ Plan
www.humanevents.com/article.php?id=46828
Can Herman Cain’s Plan work?
http://axdwhiteman.info/index.php?option=com_content&view=article&id=102%3Acan-herman-cains-999-plan-work
Why We Need Herman Cain’s plan:
http://www.nerds4cain.com/Blog/archives/759
What do these numbers mean for me?
http://www.nerds4cain.com/Blog/archives/723
Herman Cain’s 9-9-9 Plan: Issue #1 Addressed
http://nomushrooms.blogspot.com/2011/10/herman-cains-9-9-9-plan-issue-1.html
After he's in the white house, he will likely entertain fresh bold ideas on taxes...
Young Caine: You cannot see.
Master Po: You think I cannot see?
Young Caine: Of all things, to live in darkness must be worst.
Master Po: Fear is the only darkness.
Master Po: [after easily defeating the boy in combat] Ha, ha, never assume because a man has no eyes he cannot see. Close your eyes. What do you hear?
Young Caine: I hear the water, I hear the birds.
Master Po: Do you hear your own heartbeat?
Young Caine: No.
Master Po: Do you hear the grasshopper that is at your feet?
Young Caine: [looking down and seeing the insect] Old man, how is it that you hear these things?
Master Po: Young man, how is it that you do not?
People need to calm down a bit. Mr. Cain has said that his plan is a transitional plan to the Fair Tax, which he has supported for years.
He will have to include: generous personal exemptions, exclusion of social security income (since retirees pay no payroll tax as an offset), and include a balanced budget amendment or cap to fed spending amendment.
The 9-9-9 plan has only one deduction and this is for charitable donations. That’s a great idea and should be kept in any flat tax plan
That big fat phony Warren Buffet donates most of his earnings to the Bill Gates Foundation because he like what they do with his money better than what the Federal parasites + Obama will do if he declared it as income and was taxed on it.
With his 9-9-9 plan Herman Cain might be getting a little too specific. Actually, it’s not the specificity; it’s the rigidity that Cain has been displaying which will eventually hurt him.
If Cain were to give spongy answers (e.g., we could look at not taxing food, we could look at giving rebates, etc.), then people wouold complain that the numbers don’t add up, and they would be right.
Learn from history. Since the inception of the income tax, Congress has never been able to increase revenue above 20% of GDP. whenever they attemted to raise revenues by raising rates, the markets adapted and revenues remained relatively flat as percentage of GDP. 10-10-10 would net 20% of GDP. I would accept that coming out of the gate. I do not believe Congress can devise any plan that will net more than 20% of GDP, never have and never will.
What does it tell us about conservatism — both conservatism in general and conservatism as it is embraced by those who post here on FR — that only back in 1992 George H.W. Bush could be “fired” for braking his “read my lips, no new taxes” pledge.... to a new, national tax of almost 10% imposed on EVERYTHING?
A 9% national sales tax is a loser. If Obama and the ‘rats had proposed this, there would be universal howls here.
But let “our black guy” proffer it, and..... ???
From the party of “no new taxes” to “we’ll sock it to ya on EVERYTHING”.
Yup. That’s progress for ya....
Just sayin’....
***Cain is on the right track, all Cain needs to do is be a little less specific and detailed***
That is a fair statement. In order to reach the uneducated masses who elected the other One based on a few catchy phrases; Cain will have to devise a postcard chart they can comprehend.
His plan passes muster with those who are on the same intellectual plane as Cain - but it must be understandable to the masses.
Heck - even here on FR there are people who can’t or won’t read the literature/formula.
I agree...there will need to be flexibility.
Bill Bennett mentioned this morning that he’d like to have Paul Ryan look at it and discuss it on his show, Bret Baier just mentioned that Art Laffer is going to be his 6 p.m. news show to discuss. Let’s let some other (experts) take a look at it and tell us what will work..and what needs work.
He still holds the top card, EVERYONE is talking about 999. Has anyone (media, columnists, etc.)looked at Romney’s yet and agreed or disagreed with it? I haven’t seen it if so. And that means Herman has the jump on them..simplicity. The guy knows his marketing stuff. Among many other things :-)