Cain's 9-9-9 Plan Gets a Closer Look

Wall Street Journal ^ | 10/12/11 | John D. McKinnon

[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."

[DRey]

Palin.

[Repeal The 17th]

On the same page as you, I think.

[grumpa]

He needs to add a balanced budgent amendment and/or a limit on federal spending. This would quickly shut up the naysayers who think the 9% sales tax would turn into something higher. Problem solved.

[magritte]

Used goods are not taxed. Yes, I’m for Perry.

Not at first, at least...

[Texan]

So then what's the backup plan?

The backup plan is to make sure we elect supermajority REAL conservatives in both houses who can over-ride any presidential veto.

Then direct them to pass a balanced budget amendent, tackle the massive fraud in the Medicare/medicaid program, and reform the entitlement program and tax code.

That would be a good start.

[Texan]

Let's expand that model to a retired couple living on SS alone (God help them) or SS and dividends. They would gain from paying no tax on dividends (if I understand correctly). However they would now pay an additional 9% on virtually everything they buy, including food which used to be exempt.

The question is, would they benefit or get hosed?

[relee]

He needs to add a balanced budget amendment and/or a limit on federal spending. This would quickly shut up the naysayers who think the 9% sales tax would turn into something higher. Problem solved.

And as soon as he includes 'a balanced budgent amendment' to the 999 plan, I will shut up. Until then, I believe a new tax, a national sales tax, is dangerous.

[org.whodat]

Still shucking for amnesty???? Not haveing much luck, maybe that is having no luck. Old doofus perry sliding on out.

[org.whodat]

Still shucking for amnesty???? Not haveing much luck, maybe that is having no luck. Old doofus perry sliding on out.

[DTxAg]

Let's expand that model to a retired couple living on SS alone (God help them) or SS and dividends. They would gain from paying no tax on dividends (if I understand correctly). However they would now pay an additional 9% on virtually everything they buy, including food which used to be exempt.

With no other income, the couple on SS loses 9% since they are subject to national sales tax. With other income, it's unclear since Cain's website says there is no capital gains tax but a tax on gross income would include any capital gains (yes, capital gains are income under current law). In that case, the couple either pays 0% or 15% capital gains tax and some taxes on part of their SS benefits. 9% on the dividends and 9% sales tax is probably more than they would pay in taxes now.

[DTxAg]

Sorry, meant to say:

With no other income, the couple on SS loses 9% since they are subject to national sales tax. With other income, it's unclear since Cain's website says there is no capital gains tax but a tax on gross income would include any capital gains (yes, capital gains are income under current law). In that caseUnder current law, the couple either pays 0% or 15% capital gains tax and some taxes on part of their SS benefits. 9% on the dividends and 9% sales tax is probably more than they would pay in taxes now.

[rrebo]

You forgot the Presidential power of the executive order; constitutional or not.

[manc]

agree.
This new tax imposed would be the lefts dream.

Like Michelle Bachmann said.
Will it be the 15, 15, 15 plan or turn into a 30, 30 , 30 plan.

All I know is that my MIL who is on SS and dirt poor, no car, no luxuries even like some chocolate, can’t afford some food she wants, lost a load of weight and only can afford half of her meds will now have a new 9% added thus she is out of pocket even more,.

Maybe Cain who is my man thus far as he is better than Romney needs to address this because I guarantee the left will go and attack this like mad and down in FL many older folk will not be happy seeing less money in their pocket while Trump down the road gets his taxes cut over half.

Not saying I agree with that but saying how it will play out and to win the election he needs this state .

[manc]

the latter in your question.

[palmer]

unning for President on a tax plan that increases taxes significantly on the middle class is not a real smart idea.

A tax plan that significantly helps the economy is going to look better than "soak the rich" or whatever Obama is running on. The other thing is that Cain has demonstrated economic leadership, Obama is just an idiot who has never worked in a real business, never had a real job and certainly never created a single job.

[palmer]

while Trump down the road gets his taxes cut over half

Then you need to join the Obama campaign. He has promised to soak the rich.