bttt
999 sounds great at first but flaws emerge under a closer look.
yes in fact you are wrong. The estimated federal tax already imposed on all purchases is about 22%. Also there are exceptions for poverty level working poor. Also the sales portions is only applied to new purchases. There is a lot more to it then the simple 999. I suggest you o to his site and pull down the pdf.
A pensioner making only $15,000 is screwed no matter what tax plan is used.
My advice? Go back to work.
Something seems wrong with your example...
Only half their social security is subject to tax at this time so in your example the pensioner would not pay any tax.
Telling millions of pensioners that they will now be taxed is a sure winner.
Price of goods would decrease under 999 since it does away with the various embedded taxes: http://999calculator.net/
You could also throw in that when they spend out of savings they get whacked for 9% sales tax.
This is a common flaw when people analyze the effect of 9-9-9.
Under the current system, taxes, which are a cost of production, are embedded in the price of a product. Under 9-9-9 part of that cost is moved to the point of sale. The net price out the door will not change. The list price of the product will fall 9% because of less embedded tax cost.
The increased tax on the pension is an issue. Although I agree with the plan overall, there is no logic in taxing Social Security retirement benefits and certain levels of pensions. Not a difficult issue to resolve in implementing the system.
If you mean someone who is "Retired" (like I am) and drawing SS, then I don't know what you are talking about as my benefits are NOT taxed.
And who do you REALLY support?
6000 dollar deduction??? I wish I had that!!! Do I need to tell my tax guy about this????
Take a look at this thread to gain a better understanding of the plan:
http://www.freerepublic.com/focus/f-news/2793957/posts
The only problem with your analysis is that it’s incorrect.
WASUPWITHDAT???
Cut him a break.
Eat Democrats.
ML/NJ
People who make, sale stuff, stock stuff, ship stuff have to pay high taxes, you end up paying their taxes plus a sales tax. Their tax goes way down, they will start lowering their prices or someone else will make the same product and lower their prices. Someone help me out, am I wrong?
By dramatically reducing taxes on production and imposing more of the federal tax burden in the form of a sales tax, the 9-9-9 plan takes away advantage from overseas manufacturers and makes domestic manufacturers more competitive.
The tax burden on domestic manufacturers is reduced and BOTH domestic and foreign manufacturers have their goods subjected to sales tax.
When combined with the lifting of regulatory burdens that the Republican candidates in general all favor, we can see the return of decent manufacturing jobs and return of economic hope for the grandchildren of these pensioners.
Items like televisions and other consumer goods could be feasible to manufacture in the United States again.
The prices of consumer goods would come down under 9-9-9, offsetting higher sales taxes.
Pensioners have a choice: they can derail tax reform and improving US economic competitiveness by objecting to shifting invisible taxes that they already pay embedded in prices to a visible tax, or they can allow their grandchildren to have some prospect of a decent standard of living and US economic competitiveness.
Sir, your question is an honest and earnest and one that deserves attention and respect. Anyone who behaves otherwise is a jerk.
Part of the reason that you’re not getting a straight answer is that nobody really knows. The details of the plan aren’t out. Right now we’re discussing generalizations.
Even if Cain puts out every detail of his plan, in the end he will not be the one writing the bill. That will be congress and Lord knows what they’ll do to it.
With that said, Mr. Cain has reassured us that SS income will not be taxed. My grandparents received a pension from GM, so I’m guessing that you have something similar in addition to SS that you may be concerned about.
Mr. Cain has assured us that he will make sure that seniors and those in poverty will not be harmed by his plan.
I cannot see things like food and medicine being allowed to be taxed by congress. That plan simply won’t pass.
What the others are saying about the 9% sales tax not being a concern is true. The prices of goods will drop once the corporate tax drops and free market competition takes effect.
Congress will not pass a bill that destroys the elderly. Mr. Cain has no desire to hurt the disabled and the elderly.
Your country will take care of you. There are tens of millions of Boomers who’d never allow the new tax system to destroy their retirement. Believe it or not, those of us in the younger generations have no desire to hurt ‘grandma and grandpa’ either.
Yes, it would be.......A typical pensioner no longer saves, their pension goes to pay their debts, bills and everyday purchases. An additional 9% Federal tax would be disastrous to the majority of them.........