Posted on 10/18/2011 2:52:12 PM PDT by Def Conservative
The business portion of Cain’s plan apparently does not allow employers to deduct wages and salaries, which means — for all intents and purposes — that they would levy a 9 percent withholding tax on employee compensation. And that would be in addition to the 9 percent they presumably would withhold for the flat tax portion of Cain’s plan.
Employers use withholding in the current system, of course, but at least taxpayers are given credit for all that withheld tax when filling out their 1040 tax forms. Under Cain’s 9-9-9 plan, however, employees would only get credit for monies withheld for the flat tax.
In other words, there are two income taxes in Cain’s plan — the 9 percent flat tax and the hidden 9 percent income tax that is part of the VAT (this hidden income tax on wages and salaries, by the way, is a defining feature of a VAT).
(Excerpt) Read more at cato-at-liberty.org ...
Cain has yet to explain SS and Medicare and Obamacare under his plan.
Total B/S. What is the current corporate tax rate? And what is the additional percentage currently tacked on to employers as a “payroll TAX?”
What is the big deal? This is ONLY a plan and is at least 15 months from beling presented to Congress.
IT CAN BE CHANGED!
Not that we shouldn’t analyze the 999 plan, but he has positions on other issues. Let’s not chew up one of our own. 999 isn’t law yet
. Hell, the guy hasn’t even been elected yet. His ideas can be tweaked.
The Tax Code would put a lot of Tax Lawyers out of business.
That’s why it will never happen.
He's right about the plan not allowing employers to deduct employee compensation (this was not at first clear to me from the bullet points on Cain's web site).
But it is not a withholding tax and Cain's corporate income tax is not a VAT tax.
Cain's plan will have two tremendous benefits to our economy:
1. Even though employee expenses are not deducted, it still lowers the overall tax burden on American businesses. By shifting tax onto a sales tax, then goods sold by foreign producers also have to bear that tax along with goods sold by domestic producers.
This will make domestic manufacturing more competitive, and we may even see things like televisions again manufactured in this country.
2. It shifts the incentives away from consumption to savings. One of the biggest problems in our economy is the overall abysmal trend in the savings rate in the last 20 years. Increasing domestic savings will make more capital available for businesses and jobs and eventually reduce the burden on government to provide a safety net for people who neglected to save during their earning years.
When you bring in the whole "empowerment zones" issue the plan is probably gonna go bust anyway.
Cut,Cap and Balance. That is the ticket.
Newfangled tax plans are unnecessary right now anyway. It made him famous and now it's his albatross.
Steve Moore on Kudlow.
And a 9 percent payroll tax will definitely be a huge increase on the cost of every product or service manufactured, produced, processed or delivered in America. And levied and tacked on at every stage of production. Exactly what Cain was trying to remove. Talk about VAT!! At least at the retail sales stage, it’s only levied once!
You could sense the plan wasn’t well thought out from a political standpoint.
“Not that we shouldn’t analyze the 999 plan, but he has positions on other issues. “
The problem is that anytime someone brings up other subjects, he very quickly steers the conversation to 9-9-9. He’s got a plan. I get it. *He* needs to come out and say, “Look, this is a plan in its preliminary stage and the whole thing will have to be debated in Congress. 9-9-9 is important, but I’m flexible. Now, let’s talk about Israel . . . “ or some other such topic. He is making *himself* a one issue candidate. That’s not going to cut it in the general election.
I think this sunk Herman.
Well, I’m not wild about it, but see no need to demagogue it. It is better than what we have now. And Cain is infinitely better than Obama or Romney.
It’s very clear what’s going on here. Both Cato, and the Left are harping for the POLICY to be detailed legislation.
999 is a PLAN, it is not yet LEGISLATION.
Can we stop with the legislative nuances, such as the VAT looking part of the tax on business.
In your wet dreams.
“Cain has yet to explain SS and Medicare and Obamacare under his plan.”
Yes he has. They’re thrown into the general fund, RIGHT WHERE THEY BELONG. They’re financed through 999 (i.e., their payroll taxes end).
Now this part is my speculation, but one in the general fund, they can be treated like welfare and we can stop dishing out money we don’t have to people like Bill Gates.
Looks like another RomneyBot scared witless of a conservative.
Now Perry just needs to lay that out (he's my guy)
Spoken like a dedicate true blue RomneyBot!!
Buzz off, chump:
To: normy
That was when he was running in Massachussetts. He was running against Ted Kennedy when he said most of that stuff and was saying what the needed to say to win. Since he was running against Teddy as far as I am concerned what ever it takes to win is justified. Perry is rated D- by numbers usa and Romney is the highest at C- of all our Republican candidates. I wish it was higher but if we don’t win on this one the ‘crats will turn this country into a third world diversity society and we will all be screwed and they will do what ever they want. It won’t be pretty.
64 posted on Tue Oct 18 2011 14:21:30 GMT-0700 (Pacific Daylight Time) by bilhosty (Don’ t tax people tax newsprint)
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