Posted on 10/19/2011 11:22:57 AM PDT by TLittlefella
“And replaces it with a 9% corporate tax”
Uh, no, I believe he replaces the corporate tax with the 9% corporate tax.
A business transactions tax would radically broaden the base for businesses. Each business would pay tax on gross receipts less payments to other businesses. Allowing the subtraction of payments for intermediate goods yields the value added by the company. Subtracting investment as well yields a subtraction method value-added tax. (Page 7)If Herman Cain's own web site calls it a value added tax, why are you arguing with him?
My not so perfect understanding of 999 - You have a 9% VAT tax as part of it. Consequently - every time something is sold there is a 9% tax included. So I believe successive buyers are going to pay a VAT again.
Am I wrong in my understanding folks?
Family is indeed the corner stone of civilization.
Why do you think there are less divorces on the Asian continent than any other. But family integrity has nothing to do with tax breaks. That is no different than the welfare queens who never stop having kids because each additional kid brings in more benefit checks.
If you want more kids, more power to you. Just do not expect the single tax payers, the empty nesters, the retired, etc to support your larger no. of kids via tax breaks.
Who will pay for the college tuition of those 7 kids? Other Tax payers? This is what is wrong today. Every one wants a tax break for their favorite choice. Whether it is a McMansion with humongous interest or 7 kids in every pod, or growing corn, or drilling for oil, or installing a Solyndra panel or your roof....on and on. No wonder the budget is busted, and economy is on life support.
Cain did say that 999 must be accompanied by a 2/3 majority required in congress to increase taxes.
I don’t think Cain’s 9-9-9 is well thought out, it’s just catchy.
At least one of his supposed economic advisors has backed off of it.
It is easier for congress+president to increase invisible percentage tax such as income tax brackets or social security percentage. Are you aware that social security percentage has been tweaked 23 times since inception?
OTOH, to give a close to home anecdote, my wife knows exactly the sales tax percentages in every town and mall nearby, but could not tell me what percentage we paid on federal income tax last year, the year before or previous 10 years.
You’re right but so many people here have latched onto him, apparently for emotional reasons, and will hear nothing against him.
They will defend him even if they have to make it up.
I agree 100% it was not well thought out. It is very lacking in details and the more details that come out the more problematic the plan becomes.
He could regain a lot of credibility if he just admitted the plan needed a lot of rework and until the rework was completed he was not going to talk about the plan anymore.
Cain already stated that only those buying a brand new home would pay a tax buying homes previously lived in zero tax. Whoever wrote this doesn’t know what they are talking about at all.
Also IIRC the first $20K is not taxed under this plan so in reality their income would be $30,000.
I guess you can explain the difference? I don’t have a candidate of choice. I’d take any of them over Obama. That said, I don’t know if any of them fully understand how far gone we are or are prepared to do the things necessary to turn the ship around.
Yes, he does. But since he also eliminates the business deduction for wages, the wages are taxed at the corporate tax rate of 9%.
The vast majority of Americans don't have to botther with all those nuances, because their returns are simple unless they start making over 100K.
Above that, the more you make, the more complex things can get.
But if you make that much money, you hire a pro and it's his problem, not yours.
Right you are.
It's a gimmick--thrown out to the voters like red meat to attract them.
Were he to be elected, you won't hear about this plan again.
I wasn’t arguing the point with you philosophically. I was telling you that you’ll never leave to see it changed, and explaining why.
“Am I wrong in my understanding folks?”
Yes, it is a retail sales tax, not a VAT tax.
“You should tell that to Cain’s scoring team, who said this about the business tax...If Herman Cain’s own web site calls it a value added tax, why are you arguing with him?”
Debate is circling around whether 9-9-9 proposes a *new* VAT tax. We already have a corporate tax, in case you didn’t notice.
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