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!"
Nope. 3 taxes is a step toward a 4th...and a 5th..etc.
No ADDED TAXES.
That’s not a hard concept to understand. That’s what Free Republic stands for.
Exactly. People love to complain about our current system but run with their tails between their legs as soon as any new idea.
As for thinking you will pay a lot more tax on the sales tax, please visit the FAQ section of the http://www.fairtax.org. You already pay corporate taxes as part of the products you buy. 9% is a CUT to that amount.
Like Boortz says, Cain is still 100% committed to Fair Tax. This plan jump starts the economy for a brief period of time, buys some time to make huge cuts in spending, and buys some time to get Congress on board with the 2/3 needed to repeal the 16th.
As for 999 being raised willy-nilly that everyone is worried about. First, 999 is only 1-2 years, before a new Congressional term. Second, because EVERYONE will be paying at least some tax under this system, the impetus not to change those rates is huge. Who is going to raise them? You no longer cater to interest groups, activists, lobbyists, you have the entire country breathing down your neck from all walks of life and income levels.
If you ask me that gives us the taxpayer some LEVERAGE. We have NO leverage now. The reason they have gotten away with raising taxes all these years is because it didn’t affect everyone. This is a game changer.
Oh, and if you don’t like 9% income tax going to government? It’s minus contributions to charity. Give to your church or favorite charity instead.
He is on the right track, and all of this hysteria and sound byte analysis is stupid and beside the point.
First, this would never be enacted until it was fully fleshed out and explained. As Cain has said, once America understands it, they’ll demand it. In other words, this won’t get rammed through.
Second, the idea that these people can pull one or two little items out and analyze them in a vacuum is to totally be clueless as to how taxes are an interrelated part of every economic price and decision. This is far simpler than our current tax code, but it is not simple enough to explain in a single internet thread.
Like you said, on the right track....
Read the fine print before posting, please. The elimination of FICA tax alone puts 6.2% (not sure if that is exact current rate but close) of your GROSS earnings in your pocket. If your wages are $60k, that is extra $3620 in your pocket.
You don’t spend your entire take home earnings on buying stuff. There are monthly mortgage payments, car payments, savings, etc on which you won’t be paying the 9% sales tax.
In addition if you have capital gains or dividends, you will pay no tax on them!
yep. you would be.
He also spoke to Sean Hannity, probably no relation.
Do NOT introduce a new tax (ie. sales tax)
Because before you know it - it will go from 9% to 20%!!!!
No more sneak attaxes!
It’s all yours!
“This sneaks “national sales tax” into the conversation WITHOUT a push to end the income tax.”
That is just not true. The conversation is focused on how to *end* the income tax and repeal the 16th amendment. This is the transition phase.
I overlooked that 999 thing. Thank you.
Here’s my take:
NO NATIONAL SALES TAX!
About corporate taxes I admit total ignorance.
I suppose 9% income tax might be acceptable; how does it compare to what most people pay now?
My tax ideas are:
Cut what the fedgov does down to what is mandated in the Constitution and then we’ll talk about taxes.
Sure, sales taxes don’t rise.... And that’s why sales taxes have crept up from a fraction of a percent to 8% and higher in various locations around the country.
True enough. Michigan has had the 6% sales tax since 1994 which is a very long time as such things go. Not too many legislators are dumb enough to raise a direct tax that the people will see immediately.
That is so good, TG!
Your comment should be engraved on a plaque and hanging on every wall in this land.
Reading it now. Good on repatriating money — all candidates (I assume) like that idea.
Getting hung up on the 999 idea of individual and corporate “empowerment zones” getting favorable treatment — the creeping specter of pandering and favored groups springs to mind.
Going back for more reading.
9-9-9 means paying LESS taxes and eliminating the current corrupt, gimcrack ridden tax code by which the political class punishes the doers and rewards the do nots with a much cleaner, transparent system.
9-9-9 should is exactly in the real spirit of Free Republic.
That's what happens when the Federal Government decides to use the Constitution as toilet paper, and to hand out money to nearly everyone, setting up a welfare state that requires more and more funding.
And add to that - back when the income tax rate was at 1-2%, a lot larger percentage of people PAID taxes. Now the burden is carried pretty much by 50% or less of the adult population. How is that even sustainable? Oh - wait - it isn't, thus the reason the government is over $14TRILLION in the RED - with that number still growing...
Do you have any idea what you're paying *now*?
My daughter works a part-time minimum wage job and she pays 13% to the federal gov't out of every paycheck.
Right now, the corporate tax rate in America is 35% (And yes, they pass that on to us.)
Your overall tax burden will go DOWN, MT.
In addition, our tax rate isn't competitive with the rest of the world. If we can take some of the pressure off of corporations, we will have JOBS.
Let's also reduce the regulatory burden so that people (like me) can have an easier time starting their own businesses. Let's grow this economy.
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