Posted on 10/19/2011 7:13:01 PM PDT by OL Hickory
Sorry the vanity, but I need help understanding the 999 plan. Since every thing I read tells me a national sales tax is really a VAT tax..can the plan be changed to a national sales tax on corporations only? Then add into law it can only be increased with a 2/3 majority. I am in no way an economist but I think 27% total tax is still way lower than what business is paying now...And in theory this would be something even the left would have to get behind..They asked for the rich to pay their share and this (in theory) takes the extra tax off the tax payers and shifts it to the corporations..LIKE GE..help me here please I am still undecided at this point...thanks!
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Just sayin, ya know, history repeats, an what not.
What will GE pay? What will Sony pay? What will GM pay, or Ford, or Toyota? What will Food Lion pay? What will Google pay, or Amazon, Apple, Microsoft and IBM? TransAmerica, Citi, BoA? Before and after?
It’s nice to say “35%” or “9%” but what’s the actuality with the corporations that are the largest in their industry groups?
Why waste time posting BS. Either add or subtract but don't BS. In other words back up your mocking with actual pedal to the metal analysis or case study.
It’s not the sales tax that is the VAT. It is the corporate tax that is essentially a VAT. As opposed to the current corporate tax that is based on profits, the 9-9-9 plan taxes “gross income less all purchases from other US located businesses, all capital investment, and net exports.” That’s a straightforward value-added tax: a tax on business receipts less inputs.
Currently, you're paying a 15% payroll tax. That will go away. That's a 15% raise to you right there.
Now, sure, other aspects of the plan may eat into that gain, so you have to use one of the calculators to see how this will really work out for you. But some folks only count up the taxes that would be in place -- 9% sales, 9% income, 9% corporate. They say, "Brutal! I'll die!" It is important for people to know about the taxes that go away: Capital gains, payroll tax, progressive personal rate, high corporate rate, etc.
There are pluses and minuses, and some folks just take a quick glance at one minor bad thing and then throw up their hands and ask "What are you doing to me???"
I think the plan is brilliant.
In the long term prices should come down as competition sets in and/or wages may increase a little. In the short term you’ll have 9% less money to spend and the deficit will increase. Expect rioting by the poor.
>>>Yes, but as far as I understand Cain’s plan, corporations will pay 9% instead of 35% so necessarily prices will come down
As opposed to the current corporate tax that is based on profits, the 9-9-9 plan taxes business receipts less inputs.
From the Laffer article in the WSJ:
“Thus, Mr. Cain’s 9-9-9 tax base for his business tax is $9.5 trillion, for his income tax $7.7 trillion, and for his sales tax $8.3 trillion. And there you have it! Three federal taxes at 9% that would raise roughly $2.3 trillion and replace the current income tax, corporate tax, payroll tax (employer and employee), capital gains tax and estate tax.”
It would appear that about 38% of the revenue from the 9-9-9 plan would be derived from the corporate tax. Looking at the current Monthly Treasury reports, corporate income tax accounts for about 8% of revenues under the current plan. Assigining half the payroll tax receipts brings the corporate share to 26% of revenue. I’m not sure how they will be able to roll back prices.
>>>Nothing changes for corporations except the rate. They now pay around 35% in taxes. Under Herman’s plan, they will pay 9%.
That is not true. As opposed to the current corporate tax that is based on profits, the 9-9-9 plan taxes business receipts less inputs. Labor is not a deductible expense under 9-9-9.
The tax is not 27% total. It is 18% since money is either income or business revenue, never both. The whole point of the system is that money is never taxed as both. So the total tax is always 9% + 9%.
If you look back at Federal Revenue since the inception of the income tax, it has always been between 18% and 20%. The Cain plan would net 18%.
Would you have a link for that info? Thanks.
So corporations like GE pay something..NO business pay any taxes.
>>>would you have a link for that info?
http://www.nationalreview.com/agenda/280528/several-new-problems-9-9-9-josh-barro
Thank you.
price of wheat goesup, the price of bread goes up.
price of wheat goes down, the price of bread stays up
this is a very old saying
2 things
Herman is nutz if the thinks CONgress will give up the power they hold ie- the power to buy and sell favors thru tax law.
Herman assumes that prices will go down if taxes go down.
He hopes big.
If I had to chose a candidate today it woud be
None of the above.....
good luck to HErman and all,, but he is just too much a lightweight to be a player.
Price of wheat goes up, the price of bread goes up.
price of wheat goes down, the price of bread stays up
this is a very old saying
2 things
Herman is nutz if the thinks CONgress will give up the power they hold ie- the power to buy and sell favors thru tax law.
Herman assumes that prices will go down if taxes go down.
He hopes big.
If I had to chose a candidate today it woud be
None of the above.....
good luck to Herman and all, but he is just too much a lightweight to be a player.
Guess you don’t remember what the economy was like before/after Reaganomics then.
The price of wheat went down, so did the price of bread.
It’s called supply side economics and we have a huge example in our lifetime, that WORKED.
What you say is true, for a while. As with the price of oil. The price of crude goes up, or something goes bump in the night in the Middle East, and gas stations immediately raise prices. The price of oil goes down, the gas station prices DO eventually come down. Why? Competition. Same thing would happen with corporate taxes going to 9%. Prices would stay the same for a while. And then fall. That’s business.
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