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Cain's 9-9-9 Plan Gets a Closer Look
Wall Street Journal ^ | 10/12/11 | John D. McKinnon

Posted on 10/12/2011 5:07:23 PM PDT by DRey

Mr. Cain made it clear Wednesday his plan remained a work in progress. Visiting Concord, N.H., he added several new wrinkles. He would preserve the deduction for charitable donations, making the flat income tax not so flat; he would exempt any used goods, including previously owned homes and cars, from the national sales tax; and he would allow businesses to deduct new equipment purchases from their 9% corporate income tax, as long as the goods were U.S.-made.

Asked how that would apply to a computer designed domestically but containing Malaysian components and assembled in China, he replied, "I have no idea."

(Excerpt) Read more at online.wsj.com ...


TOPICS: Politics/Elections
KEYWORDS: 999; cain; dumdumdum; hermancain
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To: relee
Introducing a national sales tax is a dangerous idea.

And introducing a national sales tax without simultaneously repealing the 16th Amendment just ensures both sales taxes and income taxes will be around for a long time.
21 posted on 10/12/2011 5:40:49 PM PDT by DTxAg (The Presidency is not an entry-level position.)
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To: DTxAg

who cares? i’m just voting against romney out of spite @ the GOP Establishment. i’d vote for newt gingrich’s divorce lawyer over mitt romney.


22 posted on 10/12/2011 5:41:33 PM PDT by exist
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To: DRey
I am aware Cain is not the president, nor will he ever be

Since you seem to know the future....Can you tell me where the NASDAQ will close the end of the month.

TIA....

23 posted on 10/12/2011 5:42:12 PM PDT by Osage Orange (Si Vis Pacem, Para Bellum)
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To: DRey

Who did you vote for in 2008?


24 posted on 10/12/2011 5:44:07 PM PDT by CSI007
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To: DTxAg

Considering we are going to hell in a hand basket....maybe we all NEED to be having some “skin in the game”.


25 posted on 10/12/2011 5:45:23 PM PDT by Osage Orange (Si Vis Pacem, Para Bellum)
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To: Repeal The 17th

I want a conservative, a full conservative, not some half baked one which is liberal on social issues.
I want a candidate who is conservative all around.

First thing is to overturn this insane policy in the military of serving openly.
I still have pals left in and they are all pissed off over this, my sons are now not joining either.

Then repeal Govt health care, we should get full power the way the Dems are going so there is no excuse,

Then repeal everything this clown has done.


26 posted on 10/12/2011 5:45:31 PM PDT by manc (Don't fall for the trolls who promote the protests on here, Marriage= 1man+1 woman)
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To: DRey

Too many people are missing the forest....

This is bold new action.....

The existing tax system is screwed up, the existing entitlment programs are screwed up, unsustainable and will ultimately bankrupt the USA....

What Herman Cain’s plan is the start of a national debate about how to implement a fairer tax system that limits the ability of the government to shackle the American people. Take the power out of the hands of government and put it back into the hands of the people. What’s not to LOVE?

Cain’s plan is not a miracle plan, if that was the case there wouldn’t need to be a debate, but it does do some good things. It gets rid of the progressive taxation that is screwing up the economy allowing Liberals to wage classwarfare. It gets rid of the taxation that inherently creates a dependent society. It saves tons of money by eliminating the IRS, and reducing reporting requirements and filing requirements that businesses and individuals spend billions on every year. These savings can be applied to pay down the national debt. Businesses will be able to reinvest and expand without worrying about all of the tax code implications.


27 posted on 10/12/2011 5:45:54 PM PDT by Typical_Whitey (Herman Cain is the epitomy of MLK's dream.)
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To: manc
If a woman is on SS at the age of 70 then does this plan make it more expensive for her to buy groceries, meds etc?

Under current law, Social Security benefits are not taxable if she has no other income. So yes, this plan imposes a 9% tax on her spending, and she buys less. If she has other income, some of her Social Security may be taxable and the other income is taxable, and she will probably buy less again (really depends on specific numbers).

At a $20,000 job, she would ordinarily pay 5.75% in income taxes if she is single and takes standard deductions. Obviously, 5.75% < 9%.
28 posted on 10/12/2011 5:46:39 PM PDT by DTxAg (The Presidency is not an entry-level position.)
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To: sklar

That is my MIL and wife’s question.

Though it will never get passed anyway or I doubt it .


29 posted on 10/12/2011 5:47:20 PM PDT by manc (Don't fall for the trolls who promote the protests on here, Marriage= 1man+1 woman)
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To: sklar

No. Everyone pays 15.3% payroll tax.

Employers match half, but that is considered part of compensation, so if that half is taken out, then compensation goes up. So indirectly, employees pay it.

Sales tax is a different animal. The Fair Tax HR25 is well researched and it shows that there is 22% embedded taxes in everything you buy, including food, including medicine. Fair Tax takes embedded taxes to zero. 999 also reduces the embedded taxes. So the end result is yes, they will pay 9% but the item itself is reduced.

Some people take issue with the food and medicine being taxed, but again, they don’t take in to account the reduction due to embedded taxes . If that becomes an issue, they could provide a prebate and offset it somewhere else , but I would think that needs to be the only exception because you do not need to start opening up a ton of other deductions, or then it ends up a mess.

PLUS, used goods are not taxed at all. If you are the poorest of the poor, there really isn’t a need to buy a new car anyway, right?

There is a welfare to work idea called “empowerment zones”, that has more deductions to get people off welfare into jobs.

I will say this - this whole thing has really gotten me to thinking just how comfortable we have made it in the US to stay “poor”.


30 posted on 10/12/2011 5:47:55 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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To: DRey
I am aware Cain is not the president, nor will he ever be. Were he to become president, the plan would never see the light of day in Congress; however, since Cain is running on this plan alone, it is worthy of scrutiny.

And I don't think he minds the scrutiny unlike the other candidates that don't even have a plan to talk about.

31 posted on 10/12/2011 5:48:15 PM PDT by frogjerk (Today is already the tomorrow which the bad economist yesterday urged us to ignore. - HAZLITT)
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To: DTxAg

Not that I think it will pass but if that is right then my MIL who already can’t afford her meds and food a lot and my wife will now be out of pocket.

Like I said I can’;t see it ever getting passed anyway .


32 posted on 10/12/2011 5:48:57 PM PDT by manc (Don't fall for the trolls who promote the protests on here, Marriage= 1man+1 woman)
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To: Osage Orange; DRey

I’ll take this weeks Lotto numbers too please.....

Idiot!!!


33 posted on 10/12/2011 5:49:50 PM PDT by Typical_Whitey (Herman Cain is the epitomy of MLK's dream.)
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To: DTxAg

5.75 income tax plus 15.3% payroll tax or half, which every way you look at it, is still less that 9%


34 posted on 10/12/2011 5:52:05 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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To: justsaynomore

*** Sorry that should read
5.75 income tax plus 15.3% payroll tax or half, whichever way you look at it, is still MORE than 9%


35 posted on 10/12/2011 5:52:58 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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To: justsaynomore

will there be a way where it will not go up because we all know that as soon as a VAT is imposed then the left will jump right on this new tax and raise it?


36 posted on 10/12/2011 5:53:32 PM PDT by manc (Don't fall for the trolls who promote the protests on here, Marriage= 1man+1 woman)
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To: manc

See my post above


37 posted on 10/12/2011 5:54:19 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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To: DRey

How does it penalize manufacturers of new goods? You are for Perry right?


38 posted on 10/12/2011 5:54:33 PM PDT by Durus (You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
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To: DRey

...........Art Laffer likes it.....


39 posted on 10/12/2011 5:56:11 PM PDT by Recon Dad (Honkies for Herman......Crackers for Cain)
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To: manc

It is not a VAT. It is a point of sale tax.

What is to stop them from raising taxes now?

Nothing.

999 has more built in limitation than our current tax plan:
- is transparent, so everyone will see what Congress is trying to do if they try to raise rates.

- because everyone is paying, there is no class warfare. If they try to raise the rates, there will be public outcry of raising taxes on the poor.

- Cain will ask Congress to write in 2/3 majority rules to keep from changing rates - if they will is another question. It has been done, historically.


40 posted on 10/12/2011 5:56:38 PM PDT by justsaynomore (Cain 2012 - http://teamcain.hermancain.com)
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