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To: NaturalBornConservative

It appears that the example only captures 9. It is missing the other two 9s in 9-9-9. Faulty argument.

So now Obama as $1.5M to spend (can’t see it when typing this but something like that). With his greater disposable income he buys a few more items. And pays 9%. And it ignores some corporate taxes for companies like GE, who paid $0 and now would not be so lucky.

Short sighted, non-complete example that can’t be looked at so myopically.


4 posted on 11/02/2011 9:31:27 PM PDT by plaidness (9-9-9)
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To: plaidness
***"It appears that the example only captures 9. It is missing the other two 9s in 9-9-9. Faulty argument."***

One of those other 9's was mentioned here - "In order for the Obamas to make up the shortfall they would have to spend $14,755,022 on items subject to the 9% national sales tax (take the tax cut of $1,327,952 and divide it by 9%). That’s almost 3 times their current gross income. So unless the Obamas run out and buy a new house, or otherwise figure out how to spend 3 times more than they make, on items subject to the sales tax, that revenue will never come back from them. The government will either go broke, or the middle class - 70% of those making $50,000 to $75,000 - will really end up paying $4,326 more in taxes, just like the Tax Policy Center said."

The other 9 was mentioned here - "As you know (or maybe not), like many others, not all of the Obamas income is from wages paid by an employer. Actually all $374,460 of his wages were paid by US taxpayers. The other 9% tax on his self-employed business income is already included in the table. Obama's business didn’t really have any expenses, so no sales tax would be collected there. So did taxing the Obamas self-employed business income the other 9% make up the shortfall? No. So will the 9-9-9 Plan tax the federal government for the other 9% on Obama’s wages in addition? No."

"Does the federal, or do state and local governments even pay income taxes? No. So under the 9-9-9 Plan, what tax return will government entities not be allowed to deduct wages from? When it comes to government workers, their employers will not be paying the other 9%, because their employers don’t pay income taxes. You can add other tax exempt organizations to that list as well. And when it comes to the self-employed, and small business owners, some will benefit and some won’t. Those who make more than $330K will clearly benefit more under 9-9-9, while most everyone else will pay higher taxes. That’s why this dog won’t hunt."

So if the Obamas run out and buy a brand new house for $14 million every year, then you would have a point. But most likely, that excess will go straight into a trust fund. And if the federal government passes a law whereby state and local governments, and the federal government itself, must file income tax returns and pay a 9% flat tax without the benefit of deducting wages, then you're dead on. Otherwise, perhaps the 9-9-9 Plan is simply flawed.

8 posted on 11/04/2011 6:10:37 PM PDT by NaturalBornConservative (The Author)
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