spot on, I admire Cains optomism, but once his 999 plan was shelved by congress, what’s his plan B?
If he did my some miracle manage to get 999 passed, it would hurt people like me the most. I am self employed and thus currently pay no social security or payroll taxes of any kind. I also have most of my money tied up in real estate which I currently get to depreciate and also deduct the interest portion of my payments from my taxes. Also, as a small business owner I have must purchase large amounts of supplies needed to run my business.
999 would destroy my business, destroy my personal finances, and destroy what’s left of the home market and sink most small business owners.
Frankly 999 would be even worse than Obama which on the grand scale is mostly just more of the same.
From what I can understand, there are still tax loopholes with his plan - charitable deductions, “empowerment zones”? No sales tax on used items. It will be just as complicated as our current system by the time special interest groups get in on it.
I sell antiques - they are used - does that mean I won’t have to charge any sales tax? That could be a real boon to my business - whoo hoo!! I like those tax loopholes!
I still say it’s a gimmick - will never pass - just a way for them to insert new kinds of taxes that we aren’t paying yet.
TexasFreeper2009,
Our family is in exactly the same position you are.
Beware the unintended consequences of any 999 plan.
Do you have a professional do your taxes?
If you are self-employed, unless you meet some criteria I've never heard of, you are supposed to be paying the full 15% (employee and employer's share) payroll tax, which is for Social Security under the Self-Employment Contributions Act on IRS Schedule SE.
Maybe you have zero income?
Now I guess you could be taking the tax as a business deduction AFTER paying it. Maybe that is what you are referring to. But you do pay the tax first.
If you truly are not paying the Social Security (payroll) tax, your Social Security "contribution" form you get every year will show you getting zero credits.