Why did you include only the single ‘9’ Personal Income Tax of the ‘9-9-9’ plan ?
The 9% business tax would apply to almost the same Income (minus only the State refund, and dividends, and capital gains). Or did you think Corporations would have to pay 9% on their wages and profits, but non-corporate businesses would somehow be given a pass on the business tax ?
The other ‘9’ is the Sales Tax, and you’d have to figure what he spends his money on, which is probably almost nothing due to having the White House pay all his living expenses. But for anybody else with income, you can figure the 9% sales tax will apply to almost all of it — we do have an almost zero savings rate, after all.
So your tax amount should basically be tripled.
He’d still pay less total tax than he did under the current system, but nowhere near as much less as you are showing. So what if he pays only $1.5M rather than $1.8M ? The other $300K will probably be invested in the private economy rather than letting the government spend it. Tax cuts on the investor class feed economic growth, and that is about as Conservative as it gets.
That said, I prefer my MinMax plan over the ‘9-9-9’ plan. It has no Sales Tax component, includes all forms of income from all sources, with a Min 10% and Max 15% of AGI. The Business Tax portion is a flat 10% on payroll and expenditures to foreign entities, but not profits. The above return would owe only ~$900K, leaving the other $900K in the economy where it can be productive rather than wasted as government spending.
BTW, your comment about a Flat Tax that only applies to income above some level is ridiculous. By definition you would be guaranteeing a big block of voters who are paying no taxes ... and therefor free to vote for cake and circuses without worrying about the cost. That is NOT a Conservative position.
Wrong. When you remove a 15.3% payroll tax, a 35% corporate tax, and a 35% individual tax and replace it with 9-9-9 it doesn’t measure up. See my last two posts.
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 2.6 times their current gross income. So unless the Obamas run out and buy a new house or new car or figure out how to spend 3 times more than they make on sales tax related goods, that revenue will never come back ‘from them’. The government will either go broke, or the middle class, those making $50K to $75K will really end up paying $4,300 more in taxes just like the Tax Policy Center said.
As you know (or maybe not), 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, and this data is from his actual tax return. Obamas business didn’t really have any expenses, so no sales tax was collected there.
So did taxing the Obamas self-employed business income the other 9% make up the shortfall? No.
So do you want to tax the federal government the other 9% on Obama’s wages too? Do federal state and local governments even pay income taxes? No. So what tax return will they not be allowed to deduct wages from?
So when it comes to government workers, their employers will not pay the other 9%, because their employers don’t pay income taxes. 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 pay less in overall taxes under 9-9-9, everyone else will pay more. That’s why this dog won’t hunt.