I've done the same thing myself.
Posted on 10/13/2011 5:19:07 AM PDT by Cincinatus' Wife
Herman Cain's "9-9-9" tax reform is attracting enough attention to become the focus of this week's Presidential debate. As a plan for overhauling revenues and unleashing the private sector, it's a bold gambit that shows Cain is willing to take chances and shake up the Capital.
The 9 percent business tax is a stroke of genius. It would give us the lowest business rates in the world and would make us the "tax haven" for investment from everywhere. The stock market would barely be able to stay abreast. The 9 percent personal income rate would eliminate all the deductions and put everyone on a level playing field. Tax collection from "the rich" would skyrocket because no one would hide income anymore, but "the other 99%" would make out as well. Cain's plan would fold in the 15 percent payroll tax so the new 9 percent rate would be an improvement - but would end the immunity that the bottom half has from paying any taxes at all. Altogether a good show.
The stickler is that 9 percent national sales tax. That's where things start to fall apart....
The sales tax has long been the preserve of the states and is now imposed in all but five of them (Alaska, Delaware, Montana, New Hampshire, and Oregon). The informal arrangement has been that the federal government gets income taxes, the states get the sales tax and local municipalities are granted the property tax. Often they poach. States and even cities have imposed income taxes and have also started trespassing on the property tax. But for the federal government to demand a 9 percent sales tax would be a whole new departure. Combined with state and city levies, it puts us near 20 percent, which is black market territory.
(Excerpt) Read more at spectator.org ...
We need to roll back the regulations and cut the spending and lower taxes, NOT start figuring new ways to tax and grow government.
TOTAL: $380 billion from a carbon tax? How about a 9% cut in federal spending instead?
I blew this. I need more coffee.
ping #24
I like Cain, but he needs to prove he is more than a one trick pony. The answer to every question can’t be 9-9-9.
I've done the same thing myself.
From Cain's interview with Cavuto.
Lie #1. It doesn't mention the “empowerment zone” ghetto tax deductions at who knows how much of a rate. It doesn't treat everyone equally.
It also claims everyone will save 15% off their personal tax bill from eliminating the payroll taxes. That is less than truthful because half of that is a savings to business, and there is nothing to say that it will be passed on to employees.
The 9% sales tax is a major turd in the punch bowl for the average Joe.
There is nothing in the plan on his website that says it wont be charged on used items or on services. That would be a major hit to consumers.
Savings would lose 9% of their value instantly. ( Taxed twice).
Seniors get hosed big time by having SS income taxed at the full 9%, even those just scraping by.
It has zero chance of ever passing and once you take that away, what the hell is left of Mr 999 ?
The “Cain train” is the fast track to the Romney nomination.
“The problem isn’t revenue, the problem is SPENDING!”
Definitely.
Unfortunately, whether we like it or not, the majority of Americans prove time and again that they don’t really want lower spending when it comes to their pet cause.
Furthermore, our problem is not just spending which has not yet happened, but also that which already has - aka debt.
If you or I could run the country, no doubt we’d slash federeral discretionary spending by probably 75%.
All that said though, we are left to face “reality”.
Cain’s idea is to change the structure of gvt funding. I agree with many here who point out the slippery slope of a federal sales tax. But that slope is no slipperier than the current corporate and personal income taxe slopes.
You have to admit, 9% corporate and personal taxes would be a monumental boon to business.... I think we’d be drowning in jobs.
The writer’s name is Green Lantern and it wants a carbon tax? People are getting too hung up on the 3 numbers Herman Cain is using instead of looking at this as 3 separate taxes. As long as there is a Constitutional amendment that prohibits raising the consumer tax with dropping the income tax equally, I don’t see a problem with the eventual transition from one to the other. A carbon tax is just plain evil. If green energy can’t stand on it’s own, it can wait until the day that it really is a viable source of energy. Taxing other sources of energy beyond what we can afford will only make that energy more affordable to other countries who don’t buy into the green movement.
“Not a chance.”
They seem to swallow it in Europe Ok.
Direct taxation (of income) was always constitutional. What was not was direct taxation without apportionment. Apportionment is what made the income tax so difficult that it was essentially impossible. The 16th amendment removed that requirement on direct taxation of income or carbon.
Sales taxes are considered indirect taxes.
Cain needs to focus more on who he is and how he thinks instead of his plan.
When he sells himself, he wins.
Selling his plan is costing him more than he knows.
The primary concepts behind the plan is what is important... simple and TRANSPARENT.
I don’t support the NST either... but I don’t think we should discard Cain because of an aspect of his plan we KNOW won’t get passed.
>> Capital has a different meaning entirely <<
Good point. And with all the gov’t intrusion on business that we now suffer, the term “capitolism” might best describe our current economic system!
Emphasis on the ‘Green’
Let’s face it. The Monet needs to QUIT coming. Spending cuts. Period.
Do you really think such a thing has a chance of a snowball in hell getting passed in our Congress? They can’t even come up with a budget!
This is just a gimmick to get elected - this will never happen in a million years. Mr. Cain is either extremely naive about the impossibility of getting a simple plan passed - or he knows it doesn’t have a chance, but it will get him votes.
I like the idea of a sales tax though. It allows the drug dealers, hookers, loan sharks, organized crime, and cash players the opportunity to contribute to tax revenue.
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