Posted on 11/21/2011 10:47:29 AM PST by monkapotamus
The name of the paper does not necessarily denote union affiliation.
For example, our local paper is called the Dallas Morning News. It is a Dallas paper and it is delivered in the morning but is it news or is it liberal garbage.
omigosh, samantha, you really don’t like Newt, do you.
What’s with the slept in the same bed with his mother thing? How old was he?
I just watched the CSPAN broadcast of Newt at the Union Leader. I’m voting for him.
bookmark
Dividends are taxable under 9-9-9 (for the individual; Cain says 9-9-9 eliminates “double-taxation” of dividends, but gives the deduction to the business, according to Americans for Tax Reform’s analysis.
If you are carrying capital losses, like many of us are, we lose them under 9-9-9. Unless the politicians figure out they can’t take away a carry-forward capital loss, so they’ll have to grandfather that in; whether they would also grandfather in unrealized capital losses, or risk large sales and market disruption as people try to grab their losses and push their gains forward is an open question.
Why do you think the current tax code is so complicated? Under 9-9-9, you still have to report all of your interest income, and I believe your dividend income. If you do contracting you still have to do some sort of business tax reporting.
OK, so they eliminate deductions — you could have taken the standard deduction any time you wanted, and saved all that work. And when I was audited, it was because they thought I didn’t report an IRA contribution properly. Is Cain eliminating IRAs? I also got hit once because I put my daughter’s SS on wrong. I suppose if I can’t deduct my dependents that wouldn’t happen, but I thought Cain still let us have our dependents, otherwise a family of 4 might pay the same tax as a single person making the same amount, even though the family of 4 has much less money to afford to pay in taxes.
And you will still get audited if they think you are cheating by getting paid under the table, or if you were selling stuff that was new and owe the sales tax. The idea that nobody could cheat on their taxes under 9-9-9, and therefore there’d be no audits, is silly.
I don’t get the “complicated tax code” anyway. Turbotax is $35 bucks, and I just enter the numbers, and electronically transfer the results. It takes a few hours and I’m done.
9-9-9 Plan: Summary
•Removes all payroll taxes and unites all tax payers
•Provides the least incentive to evade taxes and the fewest opportunities to do so
•Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etc…
•Is fair, simple, efficient, neutral, and transparent
•Ends nearly all deductions and special interest favors
•Features zero tax on capital gains and repatriated profits<++++++
•Exports leave our shores without the Business Tax or the Sales Tax embedded in their cost, making them world class competitive. Imports are subject to the same taxation as domestically produced goods, leveling the playing field.
•Lowest marginal rates on production
•Kills the Death Tax
•Allows immediate expensing of business investments
•Eliminates double taxation of dividends <=================
•Increases capital formation which aids capital availability for small businesses
•Increased capital per worker drives productivity and wage growth
•Features a platform to launch properly structured Empowerment Zones to renew our inner cities
•The pro-growth, pro-job, pro-export economic policies of the 9-9-9 PLAN equals a strong dollar policy
You are NOT 100% correct on tax on dividends. Currently the corporate dividends are paid out of AFTER TAX profits. Then the recipient of dividends pays tax again. Check the dividend line above marked <======.
Elimination of death tax would be a wonderful gift to our heirs. The worst thing I hate about current tax system is having to maintain records for decades on my long term investments for computing capital gain/loss when sold. All that paper work goes away with 9-9-9. Check line marked <++++++.
You can’t be serious when you claim current tax calculation is not complicated. I literally spend several days on collecting all the tax forms, and I get upto 40 or 50 1099’s. Then there is calculations for kids with their income and how it affects my tax return.
I believe it eliminates the “double taxation of dividends”, by allowing business to deduct dividends it pays out. So the individual would still pay tax on dividends, which would look like ordinary income.
That’s what the analysis I read says. I haven’t seen the actual plan language, just the summaries like you posted.
BTW, with zero tax on capital gains, and a single tax on dividends, I would expect companies to stop paying dividends, and instead to invest the money to make their business market value rise. If they pay out a million bucks, someone pays 9% tax on it. If they put the million in a savings acount, the business value grows by a million dollars, the total stock price can go up a million, then they can sell their stock, take the capital gain, and pay no tax.
There are a few good things about 9-9-9, but most of the “benefits” are just hype. The plan is revenue-neutral, which means it doesn’t cut taxes; for everybody who gets lower taxes out of it, someone else gets higher taxes out of it. In fact, it is a slight tax increase under it’s latest form, raising taxes to 18% of GDP. But it doesn’t help that it cuts the marginal rates, because with all the deductions gone you pay the same tax.
Well actually, I would expect that you, like me, would pay more tax. Because rich people definitely pay a lot less under the plan, and even when you bring all the poor people into the program, they don’t have enough money to make a difference. Since it is revenue neutral, we the middle class will make it up. I have lots of deductions, and will lose most of them.
I’m not against simplification, I just think it is absurd to argue that a plan that keeps the income tax and adds a sales tax would eliminate the IRS, like someone said, or remove the chance for audits. You say you have dozens of 1099 forms. Well, you still will be tax on interest income, so you will still have dozens of 1099 forms.
I use a tax program, and I just have to enter the numbers. It remembers my investments from last year, so I only need to type in new stuff. The hardest part is itemizing my charitable contributions, which we will still get to deduct, so I’ll still have to do that.
And BTW, I wouldn’t say my taxes are trivial.
My wife and I both work. In fact, I had three jobs — my real job, a part-time job, and a contract job. My wife’s job was a contract job and then turned into a part-time employee job. So last year I had 3 W-2 forms, plus two business enterprises to categorize and report. My daughter worked but she’s on my taxes, so I also had to do her tax form.
I have multiple investments across several entities, so I had a dozen or so 1099 forms (I have worked to both get them into tax-free investments, and to consolidate the reporting by getting them under an umbrella company). I have a house, and my state does property tax and personal property tax, and an income tax, so I have to work out those deductions. I also have both cash and non-cash charity, so I have to track all of that, including pricing all the non-cash items and doing those forms for reporting.
And I’m still carrying thousands of dollars of both short-term and long-term capital losses, from a bout with a crooked broker who played me for the fool I was.
I started one saturday at 8am, and finished at noon. filed two federal forms electronically, and did my state by printing it out and mailing it (because I didn’t want to pay another 15 bucks). Cost me $35 for the tax program.
I know some people have it harder. I was in a partnership for a while, and that complicated things a bit (I’ve had a couple of partnership investment items which are a pain). But I’ve done the work to both simplify, and to improve my tax situation through “appropriate” investments. I actually agree that this is stupid, and it would be better to pick investments for the investment, not for tax strategy. But we’ve had the tax code a long time, and you can’t screw over all the people who have saved money, and who have structured their investments to the tax code, by changing it out from under us, forcing us to pay tax again on already-overtaxed savings for example (that’s the 9% sales tax, without a “prebate” to cover those of us who already paid 35% on the money we put in the bank).
Since I am now retired, I expect to pay more under 9-9-9.
And that does not bother me, if it will help boost the economy for the younger generations. Besides, my kids will not have to pay any death tax, so I may not blow it all on stuff I really do not need, haha.
I’m torn between the idea of leaving money to my kids, and not leaving money to my kids. I think I will consider my retirement planning a failure if I die with enough money left over for the death tax to be a significant factor. :-)
Hey Politico!
did you get to the bottom of that sleazy sex scandal yet?
The one about Obama and his homosexual lover Larry Sinclair
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.