Posted on 09/27/2011 1:36:16 PM PDT by xzins
Have you heard about 999? Sorry, it isn't a German Hausfrau admonishing her children. What is 999? It's a new tax scheme dreamed up by Republican candidate, Herman Cain. In his plan, we have a 9% corporate tax, a 9% income tax, and a 9% sales tax.
Here is the bottom line: 999 is one tax MORE than we now have. Argue all you like about the 9% rate, but know this, we are NOT now paying a national sales tax of 9%.
Please consider this. Governments love to tax. Governments love taxing so much that they will at times violate their own Constitution in their frenzy to find more tax money to fill their coffers. Fortunately, when that occurs, citizens do have some recourse in appealing to the courts the violation of their Constitution, as is the case of the individual mandate in ObamaCare.
Not so with the 999 of Herman Cain. The Constitution says that an income tax is acceptable. It speaks nary a word about a corporate tax, meaning that taxes not specifically forbidden are OK. That means a 9% sales tax can also be easily instituted by simple act of Congress.
Remember, governments loving taxes is a passion surpassing that of teenage boys loving teenage girls. They love them so much that our current income tax, once a percent or two of one's income, is now ranging into the high 30 percent. After all, they are Congress and the only thing preventing tax hikes is elections, and even they don't seem to prevent them awfully well.
So imagine that innocent looking 999 some day being 101010 or 121212 or even 303030. What's to prevent it? Absolutely nothing.
Without a Constitutional amendment setting those precise limits, or, in my opinion, an amendment that ends the socially manipulative income tax altogether and forever, those meek little 9's are very dangerous seeds planted that will grow and grow.
Therefore, there is no doubt about 999. America's response should be "Nein, nein, nein!"
It's interesting how like minded people can see somethings so differently. I like the plan if he eliminates the 9% income tax. A sales tax eliminates a lot of the underground market and a sales tax will adversely affect an economy quicker if it's increased.
Please explain what a Fair Tax means and a working example to make sure I understand your definition.
I know what flat tax is having supported the Steve Forbes plan.
Less taxes? Are you serious?
Take America’s average salary of 40 grand. That person will pay up front $3600 a year in income tax. Take their spending, which is every dime they earn unless mortgages are exempted.
Add another 9% sales tax of 3600, but we’ll cut it in half. That’s 1800 bucks more. That 40,000 dollar employee is paying $5400 a year in tax to the Fed, and that’s before state and local take their bite.
What is that average American paying now? About a thousand bucks.
His taxes go up 4400 dollars a year.
PEOPLE...
A national sales tax would mean that bums, junkies and welfare queens would actually contribute to Federal revenue whenever they bought a 44 at Rite Aid.
Do you really think D.C. will EVER let that happen?
By that logic, you are paying 35% corporate plus SS of 15% plus income tax.
In the article it says that eliminating the income tax by amendment is an acceptable alternative.
That's the thing - any tax that is basically excised before wage earners ever see their paycheck is easy to raise and deceive people about. But when a taxpayer actually sees EVERY PENNY of the cost of their government at all levels - they might get upset, or even MAD!
That's why my personal view is - if the income tax isn't done away with, then eliminate withholding of all income/payroll taxes. Make each and every wage earner have to write a check to the government for all the taxes "due" at the end of the year. Instead of folks granting the government an up to 12 month loan on their overpayment of taxes, instead of them not paying much attention to the actual tax burden - taxpayers would see the REAL impact of taxes.
But that will never happen.
It’s one heck of a lot better than what we have now.
Thanks. I will. :>)
999 - The Mark of Cain!
Just a thought. Wouldn’t it be easier to re-establish all those taxes once not enough revenue is realized? And then the National Sales Tax would be there too and that can keep going up.
I wish he would do a tax return for someone and show how this looks before and after.
I know figures don’t lie but I certainly do know that liars can figure (a term I use all the time and am not directing to Herman Cain in any way, shape or form).
Who would oppose this?
Why?
Who would cheer this?
Why?
And lollipops will grow on trees. Get a grip.
No it isn’t. Look at last year’s tax return. Take your gross income and multiply by 9%. Then take all your purchases throughout the entire year and multiply by 9%.
Compare the two. Which is more.
What would the 9% flat tax be based on?
An idea that never loses favor with any one but big government types who don't want you to think about it. But not at the end of the year -- every month.
Well I am against Involuntary tax collection.
Sales taxes makes it a condition of doing business that one be a tax collector.
I find that idea abhorrent.
A transition phase? you mean like when you have BOTH and no constitutional amendment that says BOTH can’t continue for forever?
***”This is like the British VAT (value added tax). It was just raised to 20% from 17.5%. Up and up and up. “***
First, the VAT tax is at every level of production, not just the end product
Second, the pain at the cash register is offset in Brittan with gov’t tax rebates and redistribution of the wealth. Cain’s plan doesn’t have that. There is no relief and people will pay attention. (This is a large part of why we’re in the mess we’re in.)
As I understand any flat tax, it is that percent multiplied times one’s income without out those “nasty deductions.” In other words, times ones gross income.
for later reading
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