Herman Cain's 9-9-9 tax plan raises math questions (How will it affect government revenues?)

Daily Herald ^ | 10/06/2011

[SeekAndFind]

RE: EVERYBODY PAYS. Sounds good to me.

Here’s the problem as I see it -— THE NEAR 50% who currently pay NO TAXES are going to fight against this. From paying no taxes to suddenly paying taxes? Who will want to do this.

The GE’s of the world ( who are able to exploit tax loopholes to pay NO TAXES ) are also going to fight this.

It’s not that this plan is not a good idea, it’s getting the MAJORITY to accept this.

Politically, it might potentially be a loser.

[for-q-clinton]

You must not know much about Cain’s plan. Hint: Chile.

[normy]

I want everyone to think like the opposition for a minute. we all know how they frame our candidates. This is what I am doing here because Cain has taken zero flak on substance yet.

I am for defeating Obama and his billion dollar war chest.

Here is Cain on entitlements

Entitlement programs like Social Security, Medicare and Medicaid should be eliminated so that "states, cities, churches, charities and businesses" can take over the task of helping the elderly, poor and disabled. Federal programs are inherently problematic because they create a sense of entitlement to government support and give people an incentive to be dependent. Welfare takes away individuals' freedom and independence, but eliminating entitlement programs would empower people.

While I agree with him, will this actually help us win? Do you think the Democrats will use this?

[Erik Latranyi]

The 999 plan has zero chanceof ever happening

Well, they say Cain has zero chance of winning the nomination, so you have nothing to worry about.

[normy]

By the way, do you know that this plan would eventually call for monthly prebate checks issued by you and me to “the poor” to cover their sales tax costs in the coming month? True story.

[sodpoodle]

Cain’s 999 plan is attracting attention to the current inequity in Federal Tax Codes; which is a good thing.

The US tax payers might finally examine how much money the Federal Government collects and spends on non-Constitutional programs.

If there is any possibility that those who currently pay ‘nothing’ are warned they might have to pay ‘something’ they will have a reason to question the fraud, waste and abuse.

[SeekAndFind]

RE: Hint: Chile.

Yes I know. And he has also talked about Galveston.

It’s easier said than done.

The would mean SIMULTANEOUS implementation of 9-9-9 AND a Chilean Model.

Tall order if you ask me. It’ll be even more difficult than passing Obamacare.

[econjack]

So a family of 4 who lives under the poverty level will have a 9% increase to their sales tax and a 9 % increase to their income tax. While a millionaire will have a 24% decrease to their income tax.

Frankly, I think it's about time that the "poor" have something in the game rather than just sucking off the public teat. If it means they have to pay some taxes, all I can say is: Welcome to my world. I have no problem with a tax cut for the rich, since they are the ones who drive this system anyway. When the top 10% of the population foots almost 70% of the tax bill, I have no problem cutting their taxes. They will use that "tax-free" money to make more money, which will mean more jobs down the road. I'm tired of us romanticizing the poor in this country. If I make a list of things the rich do for this country and stack that list against what the poor do, it's no contest. For those poor who really cannot contribute to society, let charity and the church take care of them like it was a century ago. The rest need to knuckle down, get a job, and work like the rest of us.

[Vaduz]

Enron math

[SeekAndFind]

RE: Entitlement programs like Social Security, Medicare and Medicaid should be eliminated so that “states, cities, churches, charities and businesses” can take over the task of helping the elderly, poor and disabled.

This sounds like Rick Perry’s preference as well. So, why is Rick Perry getting so much flak but not Herman Cain?

[GeronL]

So far, I am supporting Cain. Doesn’t mean I agree with him on everything. Not unless he calls conservatives “heartless”, thereby proving he isn’t one. (like another candidate)

[SeekAndFind]

RE: Enron math

Could you elaborate further?

[econjack]

If you really want to get people’s attention, do away with federal income tax withholding and make people write a check each pay period for all the taxes that are taken out of their check. You’d have a revolt on your hands.

[READINABLUESTATE]

“Who cares???? “

My sentiments exactly!

[SoJoCo]

Let’s see...this article appears to miss the fact that there would be no more SS and medicare tax as well...saving individuals and business a lot of money.

For those paying no income tax but only Social Security and Medicare the rate is currently 5.65%. Take that away and add a 9% income tax and a 9% sales tax and explain to me again how this will save them a lot of money.

[normy]

Let me play Obama for you at the colleges and inner cities.

"Herman Cain wants to cut millionaires taxes by 24% and raise the poor's taxes by 18 percent"

[for-q-clinton]

Cain already answered that. Those poor won’t be paying SS tax and that’s the offset right there. And since the employers won’t pay it either—in theory their pay could go up.

[Adder]

Which of course they would. The 9-9-9 plan is sheer idiocy.

Its a heckuva lot better than the current -1.6 tillion;-1.6trillion;-1.6trillion we have now....

:]

[normy]

That is exactly right!

[Scythian]

This sounds like Rick Perry’s preference as well. So, why is Rick Perry getting so much flak but not Herman Cain?

Because sometimes your inner-gut tell you somebody's a Poser, and alot of people correcty get that feeling about Perry. Plus, Cain has always been Cain, Perry was a big time liberal back when. Like McCain, Perry is trying to say "Hey, looky at me, I'm a tea-partier too" and we think, naa, not so much ...