Posted on 10/19/2011 11:22:57 AM PDT by TLittlefella
Anyone up for paying $18,000 sales tax on the next $200,000 house you purchase?
I didn’t think so. And for those of us who work our way up the ladder of success
at the workplace that next promotion may require moving to another city or state
another house and another $18,000 in sales tax. We are either going to become a
nation of renters or go bust trying to move up the ladder of success.
(Hell on the Middle Class)
Cain’s 999 plan is really the 999 plus 10 plan. Maybe you forgot that you no longer
have a Social Security retirement plan or a Medicare plan. You traded them for Cain’s
9% flat rate income tax. But never fear, Cain is going to put you into his favorite
Chilean model retirement plan that mandates you contribute 10% of your paycheck.
So it’s not just 9% payroll deduction – it’s a flat 19%. Take a look at his much
touted Chilean retirement plan.
The Chilean retirement plan isn’t all what it is cracked up to be, is it?
So let’s take a look at a nice married couple just getting started in life.
One flips burgers at Mickey D’s the other works at Wal-Mart. Their combined income
is $50,000. No problem figuring the payroll deductions under Cain’s 9% + 10% plan.
Their total payroll deductions will be $9,500 leaving them $40,500.
Under the current tax system that same couple using the standard 1040EZ tax return
would pay $50,000 minus $18,700 (married couple deduction) = $31,300 taxable income.
Per page 29 of the tax table they would pay $3,861 in taxes leaving them $46,139.
There it is in black and white, the couple pays $9,500 in taxes under Cain vs $3,861
using the current tax system.Of course, I haven’t even figured in the 9% sales tax this
couple will have to pay on every burger they eat, every can of soup they eat and every
roll of toilet paper they buy.
Granted, this couple could be very thrifty and buy used toilet paper to save a little,
but all in all it’s (Doomsday for the Poor and Retired.)
Cain’s 999 plan is a great example of smoke and mirrors and Cain himself is becoming
the typical career politician flipping, flopping, and failing the truth meter.
Electrocuting aliens one day and claiming it was just a joke the the next day.
Guns and live ammo on the border one day and it ws just a joke the next day.
Trading one American hostage for gitmo prisoners one minute and not the next.
Against a national sales tax one day and then creating a plan with one the next day.
Cain said because Anwar al-Awlaki is an American citizen it is not okay to kill him,
next time Cain is asked he says it's okay to kill Anwar al-Awlaki.
Against auditing the Fed one day and then for it the next day.
Against Government bailouts one day then for them the next day.
Against a Muslim in his cabinet one day then okay with it the next day.
Against raising the national debt ceiling limit one day then okay with it the next day.
If you want to see first hand proof of Cain’s flip flops check out the video on this link:
Cain Flop Flops.
At the end of the video on that link was a dazzling display of just how ill prepared Cain
is to be President as he went round and round with Eliot Spitzer.
Cain is a man lost at sea and if we turn the ship over to him he will shipwreck us on an
island of uncertainty forever.
At first I really liked Mr. Cain and the idea of having a non career politician for a president
but Cain needs to think more and speak less about things he knows nothing about.
The truth can be brutal, democrat voters were bamboozled by Obama in 2008.
We need not be smoke and mirrored by Cain in 2012.
Don’t ask me what candidate is any better because I just don’t know.
Thomas Littlefella
“Too bad your analysis is complete divorced from all fact.”
I don’t think some of these people want to be bothered with facts.
Moving at least part of the tax burden from an income tax on production onto a sales tax on new goods would be one of the best possible things we could do for the middle class.
The middle class in this country is dying.
Our manufacturing industry which used to provide the foundation of the economy for the middle class has fled to more hospitable lands.
The 9-9-9 plan dramatically reorients the incentives in the economy away from service jobs and back to capital-intensive production of goods and places part of the tax burden onto goods produced by foreign businesses.
Without something this dramatic, there is really little hope of changing the future prospects of the middle class in this country.
Anyone who has spent more than one day in Europe knows what a VAT does. Consider this VATS in Norway, Denmark, Sweden – 25%. Top tax rates in those countries are about 60% on anything over, about, 70k a year. Add ‘em together – and you’ll understand why a 10 pack of Coke costs $10 or a McD’s Value Meal is $15.
As part of being a responsible spender of my money I always buy used houses and used vehicles.
Also I buy used because the insurance rates are less epxensive as well.
And i don;t mind paying 9% sales tax on food if the food prices are lower and if the EBT queen is making the government pay itself back on food stamp purchases.
Boo freekin’ hoo....
I understand that there is an “occassional sales rule” exemption to the sales tax, just like in most state sales taxes.
That is, if you are not a retail business or otherwise don’t routinely make money by selling things, the tax does not apply.
I think the standard rule is no sales tax on:
(1) two sales in a rolling 12 month period;
(2) sales of the assets of a company or a division of a company.
So a house, for example, would not be subject to a sales tax.
Similarly, a food and clothing up to a certain dollar amount would not have a tax.
Cain made a mistake by promoting a specific simplification plan. The 9-9-9 plan is a balanced plan between personal income tax, business taxes, and consumption taxes. Other approaches are the Fair Tax (all sales tax) and Flat Tax (all income tax). I am not sure which plan is preferred. All would be preferred to the mess that we have now unless you are a member of the tax freeloading group. He should emphasize the principles of tax reform (simplification, non politicization, transparency, and others) as a vital element of economic revitalzation.
I find it distasteful the attacks on Republican candidates by other Republicans. I will support the Republican nominee and not speak ill of any candidate (except Ron Paul). Conservatives will not win unless we are unified.
What about Bachmann’s 28 ?? Or is it 47 ? I can’t keep it straight, because she mentions it so rarely. /sarc
This is all well and good, but your illustration TOTALLY IGNORES payroll taxes of 7.65% (yes I know it has been lowered this year, but that's temporary) which means an additional $3,825 in taxes.
Moreover, Cain's plan also removes the employer's match of payroll taxes and, at least in theory, many employers would pass on at least a portion of this money to their employees. Now, you can say all you want that employers won't do this, but I can tell you that whenever I hire someone I am adding 10-12% to their compensation to cover payroll matching and other benefits.
Art Laffer endorses 999
http://online.wsj.com/article/SB10001424052970204346104576637310315367804.html?mod=rss_opinion_main
BTW - all the candidates in last night debate were playing catch up to Cain’s plan with their ‘flattening’ of the current tax codes, better get on board the Cain train is leaving the station
I think Romney should fear a change in the tax code that would put all those “elite” GOP lobbyists out of work.
Also, don't forget the income and withholding taxes you currently pay on the portion of your income used to pay the principal on that $200,000 house.
Even combing the 9% sales tax with the 9% flat tax on income Cain is proposing, the ultimate cost of buying a house would be less under 999.
combing = combining
Check this out:
WSJ poll (in progress):
45% think it is a good idea
34% think it has possibilities
20% think it is a bad idea
Total votes: 9052
http://online.wsj.com/community/groups/election-day-684/topics/do-you-think-herman-cains
That’s what I’m thinking.
I heard Mark Davis explain the 999 this morning and he made sense.
Cain needs to ‘explain’ it more then just use ‘apples and oranges’, it will work, trust me. EXPLAIN so the laymen can understand!
Claiming 9-9-9 is a VAT indicates either the poster has no clue what he is talking about or he does know and he is merely lying about it in the vain notion it helps his candidate of choice.
I knew a guy that had a littlefella, and he was a bitter littlefella, it’s called littlefella’s littlefella complex, and I’m truly sorry for you, because the disease, in the third stage attacks the brain, and renders you incoherent.
Who pays sales tax on a home purchase?
I’m not passing judgement, good or bad on the 9-9-9 plan...but I know this. It won’t sell during the general election, and it will be a detriment to Cain (whom I think would make a good candidate, if it wasn’t for this one plan.)
When the MSM start milking the fact that the “poor”...who haven’t paid any taxes in “forever” (in fact they’ve gotten checks back from the gov’t when they paid nothing in due to credits)...will have to pay 9 percent sales tax on top of the state sales tax, which in our state is 7 percent...on the purchase of food, and medicine, and “necessities”...their cries and fear mongering will be heralded from the roof tops and Cain won’t be able to sell his plan to the general public.
Of course it will affect the women and children most, not to mention the disabled and elderly. /sarc And people will believe it and reject Cain. Now that’s just MHO, but I think it’s pretty accurate as to what will happen.
Selling 9 9 9 to the conservatives, that’s one thing, selling it to the independents...big problem.
Isn't Cain's 9% federal sales tax only applied to purchases of new items? Aren't used items exempt?
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