I’m trying to follow you here, xzins. If I pay 9% on gross, then spend half of my gross on retail at a 9% rate, doesn’t that give me a total of 13.5% tax paid on total gross?
Between employer and employee contribution, don’t I pay over 15% FICA & Med? Not even including federal tax?
I’m getting confused...
Nope, you pay 7% on SS and 3% on Medicare on the first X amount of income after deductions and credits.
Under the Cain plan you would pay 9% of gross income and 9% of however much you spend on the unannounced items that they plan to collect sales tax on. (Will it include sales tax on your house, your car, your utilities, your food, etc., is all unknown at this point. Therefore, I just pulled 50% of your income out of my hat as an approximation.)
Therefore, you are correct that it would be 13.5% of your gross income. A 40,000 income family with kids would pay $5400 a year versus a tax return of a couple thousand now. A 40,000 income couple without kids would probably pay about a 1000 now. 40,000 is about the American average income at this point in time, IIRC.
When Obama explains that to them...and he will...they will see Cain as the guy who wants to raise their taxes.