Posted on 10/05/2011 12:02:36 PM PDT by SeekAndFind
No loopholes? Did Cain come out with a new plan already?
The last time I looked at his 999 plan it had loopholes. What do you call his “empowerment zones” in inner cities if not loopholes?
From what I understand of his “empowerment zones” businesses there and the residents that live/work there will pay less taxes than those that don't live in the ghetto.
Do you have a link to support this?
Never heard about empowerment zones. Any Linkies?
Need more detail on this 999 thing and NO loopholes. I wonder what a loophole is? Like:
1. Are sales taxes paid on everything or just goods. Services sales tax could be a huge new expense for business.
2. Are corporate taxes collected on net income after expenses or gross income before cost of goods or on gross income?
3. Is depreciation or expensing still going to be allowed? This is a huge encouragement to renew plant and replace equipment.
4. Is anything or nothing deductable on personal income tax? I really don’t care but some might. 9% on gross income would be a windfall for many.
Here’s what Beagle8U is talking about...
From Cain’s website:
http://www.hermancain.com/999plan
Phase 1 - 9-9-9
* Current circumstances call for bolder action.
* The Phase 1 Enhanced Plan incorporates the features of Phase One and gets us a step closer to Phase two.
* I call on the Super Committee to pass the Phase 1 Enhanced Plan along with their spending cut package.
* The Phase 1 Enhanced Plan unites Flat Tax supporters with Fair tax supporters.
* Achieves the broadest possible tax base along with the lowest possible rate of 9%.
* It ends the Payroll Tax completely – a permanent holiday!
* Zero capital gains tax
* Ends the Death Tax.
* Eliminates double taxation of dividends
* Business Flat Tax – 9%
Gross income less all investments, all purchases from
other businesses and all dividends paid to shareholders.
Empowerment Zones will offer additional deductions for payroll employed in the zone.
•Individual Flat Tax – 9%.
Gross income less charitable deductions.
Empowerment Zones will offer additional deductions for those living and/or working in the zone.
•National Sales Tax – 9%.
This gets the Fair Tax off the sidelines and into the game.
Here is a link ( I’ll provide some more as I find them ):
EXCERPT
_______________________
Cain also believes the 9-9-9 plan can be used as the basis for an idea he hopes will spur urban renewal. (Seriously . . . a Republican talking about urban issues. Take a second to wait for the room to stop spinning.) In a few weeks, Cain plans to unveil a concept for urban empowerment zones in which the 9s would be replaced by lower numbers. He is not ready to commit to 8-8-8, 7-7-7 or anything else specific because he’s still got his tax policy advisors running the numbers to see what would work. But he is convinced the idea can help bring about economic revival in the areas that most desperately need it.
“The economy is on life support, and you have some cities and some communities where it’s not even on life support,” Cain said. “They’ve disconnected the tubing and they’re dying. How about Detroit? Because 9-9-9 is so simple, we can create empowerment zone incentives for whole cities in a way that you couldn’t do with the existing tax code. You’d have to go through too much work to figure out how you’d do it.”
Because such an empowerment zone would cut taxes on business revenue, individual income and consumer spending, Cain is convinced it would provide a major economic boost to cities like Detroit.
MORE ON EMPOWERMENT ZONES HERE:
http://www.politifact.com/truth-o-meter/article/2011/sep/26/facts-about-herman-cains-9-9-9-tax-plan/
EXCERPT:
________________________________
The centerpiece of the 9-9-9 Plan is to eliminate the current, complicated income tax system — with its series of tax credits and deductions and its variety of tax rates based on income — and to replace it with a flat income tax. Cain’s flat 9 percent income tax also would replace payroll taxes, which all workers pay and that fund Medicare and Social Security, and would end the estate tax, which is a tax on inheritances. Currently, about 49.5 percent of all tax filers pay no income tax at all, according to the Joint Committee on Taxation, a respected bipartisan committee of Congress. Cain’s income tax would be collected equally for workers with two exceptions — taxpayers could claim a deduction for charitable contributions (we haven’t heard him discuss a limit) and taxpayers could earn a type of tax credit for living in an “empowerment zone,” which Cain has described as inner cities needing revitalization.
If he didn't have their votes already, he won over a lot of new Herman Cain supporters with that interview.
The man makes sense and is very easy to listen and to understand.
I believe the empowerment zone is going to be Herman’s tool to combat anyone that says that the 9-9-9 plan is regressive.
Now, as for the specifics, I’m unsure, but I do believe that he would have to account for factors such as the unemployed or individuals below the poverty level because a 9% hike in the national sales tax would be very detrimental to those already struggling to make it.
Again, I’m speaking of my opinion and on my behalf.
But, to those paying income taxes, no matter the bracket, you will have more money in your pocket under the 9-9-9 plan, and that is where it is brilliant. We’re not all going to spend every cent on taxable items, it’s just not possible. We have rent, bills, mortgages, etc. But, we have more flexibility in our spending because we have more liquid cash on hand. That’s going to help a lot of people that are struggling to make those payments (which got us in to this mess to begin with).
Also, if Corporate taxes are lowered (from the current 35% to 9%), that leaves a lot of companies with the flexibility of LOWERING the price of their goods and services as well. Sheer COMPETITION and PRICE WARS will make this happen.
Thank you for the link.
The sales tax is only for new goods, and there will be no more payroll tax.
Because of the reduction in corporate taxes, businesses will grow, and hire.
The current system sucks. 999 would change everything.
I like the “Empowerment Zone” concept only because if it revitalizes these dead areas we won’t have generation after generation on welfare.
I think Cain envisions a thriving urban society (I won’t limit this based on race because it’s not) contributing to the good of all the country.
It would open peoples’ eyes to the benefit of capitalism.
It is fresh, forward thinking and exciting. I really like this man and I look forward to his Inauguration. But let’s not forget we need to give him an overwhelmingly Conservative/Tea Party Congress to help him implement his vision.
“Need more detail on this 999 thing and NO loopholes. “
I look at this 9-9-9 plan with cautious optimism. I don’t trust Congress. Without repealing the 16th Amendment what’s to stop them from raising both the 9% personal income tax and even the 9% sales tax in some future administration? I may have missed it but I haven’t seen Cain address these specific concerns.
RE: It’s like a slogan to sell pizza. You don’t have to know what’s in it.
Actually you will have plenty of time to know what’s in it. Here’s the first suggestion -— ASK.
Us. Politics. They could raise taxes anytime right now, but it is politically dangerous.
Cain ultimately wants to transition to the Fair Tax, thereby eliminating the income and payroll tax altogether.
“Actually you will have plenty of time to know what’s in it. Here’s the first suggestion -— ASK.”
Don’t mean to put you on the spot. A link with this information would suffice.
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