What Could Cain’s 9-9-9 Plan Mean For You?

ABC News ^ | 10/13/11 | Ben Forer

[SaraJohnson]

If you have a family of four with an income of just under $50,000, they could end up paying more under the Cain plan. Currently, they are taxed around $3,850 in income tax. Under Cain’s plan, they would be taxed at 9 percent or pay $4,500. That’s $650 more. Although the family would save almost $4,000 in Social Security taxes, it would have to give up the child tax credit worth the same amount. Furthermore, it would pay an additional national sales tax of 9 percent on everything purchased, including groceries and clothes, which totals about $2,000. That means under the Cain plan that family could end up paying $2,725 more.

[DTxAg]

The 7.65% employer pays ON BEHALF of the employee is considered part of an employee’s compensation. Anyone who runs a business knows this.

No kidding, but since the claim was that "the poor" see a tax increase of only 1.89%, the number is arrived at by calculating 17.19% - 15.3%, which assumes the entire 15.3% is going back to the employee. If you wish to quibble, I should have said that you aren't likely to see a 15.3% increase in take-home pay, rather than a 15.3% raise.

[SaraJohnson]

I addressed how this will be used by the Left in the campaign. I am personally, totally conservative on economics and I fully uderstand how simplifying the tax code would improve our economy.

Giving Washington a additional new pot of money - a consumption tax - is not my idea of conservative economics in the long run. So maybe it is you who is not as conservative as you think you are.

If you want to me to take a discussion when you seriously, the breathless Cainiac name calling game is not the place to start.

[moose-matson]

It falls under elimination of double taxation. Retirement income is already taxed once.

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Really? Which retirement income is that? IRA (nope) - 401k (nope) - Social Security (nope) - government pension (nope) - private sector pension (nope) -------

Which retirement income did you mean?

[Marie]

You have no idea what poverty is. Until you actually live out of a car or eat out of dumpster, don’t bother talking to ME about poverty. (Ever make your own toilet paper?)

Under Cain’s plan, prices will go DOWN. This will offset the 9% sales tax. With more people working, jobs paying more and doing well, there will be LESS poor people.

Those of us who are working will be able to better help our elderly and disabled.

Have you ever experienced a thriving economy? Do remember a time in your life when everyone in your community was thriving? When even the elderly were doing well?

If people are working and making money, we could see a return to the ‘mother in law houses’ in people’s back yards. That used to be common. Family taking care of family...

[Beagle8U]

Sorry, he doesn’t suffer fools any more than his old man does.

[montyspython]

So patriotic in fact that illegals get a free education. Yep, that’s my man.

You can reply another 100 times and won’t change the facts.

[SaraJohnson]

Now look at European countries with both income and sales taxes. They are able to plunder 40% - 48% of their GDPs because there is no tax avoidance strategy that works for a sales tax.

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Cain’s Federal sales tax would eventually become a value added tax. Ulitmately, this is what the Rinos and socialists want to put on the country so they can be like European socialists.

[justsaynomore]

It is amazing how so many want taxes cut but then we have an extra tax which might go to 15%, maybe even 25% and then those same people have no problem because they want a certain person to win. We can go on about how this will go down or this will go up but it is an extra tax with no way of knowing if the left or the right might increase it in the future .

There is nothing stopping taxes from going up now. You do understand that right? In fact, Cain's plan has even more limits:

- 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 put in 2/3 majority rules to keep from changing rates - if they will is another question.

How does this affect someone on SS and cannot afford half of their food and meds?

Because embedded tax, which makes up 22% of everything you buy, goes away.

Does this take away all deductions?

No, there are some deductions in Cain's plan.

Does this have a way of never going up in the future?

NO PLAN has a way of never going up in the future.

Does this plan tax SS

As I said to you last night, NO, Cain's plan does not tax SS personally I like the flat tax from what I know.

What is to stop the flat tax rate from going up? The same thing that keeps 999 from going up: US.

[bbernard]

” I am against introducting a new pot of money for Washington - a consumption tax.”

Congress can create a sales tax any time they like. Article 1, Section 8, Clause 1 of the U.S. Constitution says they can. So you people who think this 9-9-9 plan introduces Washington to a new pot are woofully illinformed. What do you call the GAS Tax?