Can someone explain to me how 9-9-9 does NOT become 10-10-10 in the next congress, or then 18-18-18 under the next D admin?
Same with the flat tax or fair tax. Fair tax is fair until the congress starts preferentially giving out “prebates” to political interest groups for votes.
Can you explain to me how the current tax code doesn’t become 90% tax on the anyone making more than $50K?
Nope.
Nobody will be able to explain how you're going to fire tens of thousands of IRS employees, tax accountants, etc., either.
After you explain in detail the 100,000 page current tax system. The most season IRS employees haven’t a clue, different answers for the same question for almost every question.
RE: Can someone explain to me how 9-9-9 does NOT become 10-10-10 in the next congress, or then 18-18-18 under the next D admin?
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We get this question in almost every thread relating to tax reform. The answer is the same — ANY TAX REFORM PROPOSAL WILL HAVE THE SAME PROBLEM, so if the starting point of any discussion is let’s not do it because some future Congress will turn it into a steaming pile of dung, we might as well not propose anythimg.
Herman Cain verbally stated that together with his 9-9-9 proposal is a requirement that 2/3 of Congress will be needed to increase any of the taxes.
If that isn’t enough, then it isn’t enough for any tax reform proposal.
In the end, only the people’s vigilance will stop Congress from abusing its power. If we aren’t vigilant, we deserve the government we get.
I believe the argument is that it is a lot harder to raise rates when it is on everyone vs. the class warfare that has taken place in the current system. “tax the rich”, lower taxes on middle class, etc. Everyone has skin in the game.
I agree it is a fair discussion to have, whether it is fair, flat or any tax change. I think we all agree here at FR the current system is terrible, and horribly corrupted and has been almost since the day 1. I am a proponent of the flat tax because I believe it would be a much more effective system and a much easier transition than replacing with the sales tax, but I am open to either approach.
I think the proposal is to require a 2/3 vote in Congress to change the rate.
Can someone explain to me how current progressive tax rates of 10, 15, 25, 28, 33, 35 does NOT become 15, 20, 30, 33, 38, 40 in the next congress, or then 20, 25, 35, 38, 43, 45 under the next D admin?
When you can answer that question, then I'll take your question about Cain's plan seriously.
The rates under Cain's plan are no more likely to go up than they are under any other tax plan. In truth, the rates under Cain's plan are less likely to to up because (1) they are are more transpararent, and (2) they affect everyone equally, so you no longer have the class warfare calls to raise taxes on the rich.
That's my worry, too. Once we have a national sales tax, in addition to an income tax, what's to stop the liberals from jacking up the rates and giving different groups exemptions?
It's very likely that we could end up paying even higher taxes in the future.
I don't think the liberals will ever give up the control that they can exercise with the right to tax. They slap a tax on things they want less of and give an exemption for things they approve of. Then the politicians exempt themselves from all of it.
The only way we can fix this is with a constitutional amendment that controls spending and taxes.
Our CURRENT taxes are more susceptible to going up when you have 50% of people not even paying them.
If 100% of Americans (and even illegals) pay taxes, politicians are far less likely to mess with them. Instead of only pissing 5% or 20% off, they can try to piss everyone off.
No they can't...because that's exactly what will happen...with even bigger rates to come!
Can someone explain to me how 9-9-9 does NOT become 10-10-10 in the next congress, or then 18-18-18 under the next D admin?
The powerful wisdom of the plan is that it gives all voters a stake in keeping the rates low. Most likely, we’d see popular campaigns to lower the rate, not raise it.
To restate, the 9-9-9 plan ends the era of one group seeking to raise taxes on another to garner benefits for themselves.
>>Can someone explain to me how 9-9-9 does NOT become 10-10-10 in the next congress, or then 18-18-18 under the next D admin?<<
Indeed, it might. But it’s less likely than with what we have now. I lived in Illinois when their 2.5% flat income tax had to be augmented by, I believe, a 1.5% “temporary” income tax surcharge (making it 4% for a year or so) because they couldn’t legally run a budget deficit.
When it came time for it to expire, or be renewed, there were plenty of politicians who wanted it renewed, or made permanent, but every taxpayer could calculate in his head how much money they were talking about taking from him (Make $30,000? 1% is $300, so 1.5% is $450...hell no!) and they all put enough pressure on that it was actually allowed to expire.
A flat tax is one of the hardest taxes to raise, which is exactly why politicians hate them. Granted, they’ll get raised, but not unless there’s a pretty good reason for doing so and a lot of political support for the expressed use of the money. It doesn’t get done in the dark, like a lot of other tax increases do.
Can someone explain to me how 9-9-9 does NOT become 10-10-10 in the next congress, or then 18-18-18 under the next D admin?
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I think Cain’s new Tax plan would help prevent taxes from going up all the time.
Under the current tax code we just have an income tax, one reason it is this way is because the Govt can get there money and people feel the impact of it less. If they never have the money in their hands they don’t miss it as much. They don’t feel the impact of the tax rate as much.
With Cain’s new Tax revenue stream of a sales tax people will feel more of the impact of a tax rate hike. More people would then be against higher taxes.
It would be just like this threads question, people are going to have to pay more for food every time the Dem’s want to raise taxes.
The bigger issue is preventing the plan from going to a rate of 15-15-8, of 24-25-9. My bet would be you would always see the sales tax the lowest because people have the money in their hand and they will fight against that tax rate increasing