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.

[achilles2000]

“and I don’t even pay payroll taxes because I am self employed, I would be totally screwed under 9”

If you are self-employed and not paying FICA, I wouldn’t broadcast it on FR.

[moose-matson]

Here's your first post.....

"Retirement income is not taxed under this plan - there is no double taxation."

Here's your second....

"under Cain’s plan you do no pay taxes on dividends from any of those plans."

Which is it, dividends or income?

[achilles2000]

I suspect you are wasting your time. Even on FR most people can’t think through new policy ideas.

[SaraJohnson]

But right now looking at the field of duds Cain looks the most interesting and most ‘real’ and genuine to me.

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I think he is looking better than the other candidates only because he has no governing track record to compare to the others.

What he is showing us here in basing his campaign on 999, is that he’s not ready for prime time in my opinion and he’ll lose to Obama in a general election.

In addition, I would not support giving Washington a new pot of money - a consumption tax. A flat income and flat corporate tax would be supeiror to that in my opinion, but either way, you don’t run a successful Presidential campaign on math equation sound bites.

[kevao]

Then it sounds like you need to get busy and replace a whole lot of your state and local officials with people who will reduce your tax rates. Neither Cain nor anyone at the federal level can do a thing about your state and local rates.

[manc]

agreed

[moose-matson]

On the other side of the equation - 49% of the country not paying fed taxes at all - gone.

_______________________________________________

Which is exactly why that 49% of Americans will vote against anyone who runs on such a plan.

[SaraJohnson]

I’m afraid you are correct.

[montyspython]

Statists are everywhere, what can ya do?

[rolling_stone]

The professional pols in both parties will never let go of a new source of revenue to pay off pals and buy votes.

so what is your plan?

[exist]

I support Herman Cain because he represents our best chance at throwing out the current tax code and replacing it with something more sensible.

DO NOT WORRY ABOUT 999 it will not pass! Who cares if it has problems??? It won’t even get out of committee. It is a starting point.

With Cain at least we can push for the Fair Tax or the Flat Tax. We can have serious discussions about this issue.

This is our last best chance to rid ourselves of the current cumbersome tax system.

[kevao]

Which is exactly why that 49% of Americans will vote against anyone who runs on such a plan.

LOL. Whom do you think those 49% vote for now? Republicans?

[jaydubya2]

"I think their math is wrong. How are they getting $2,000 a child? IRS states up to $1000 per child."

their math is wrong. a family of four, two adults, two children, can only deduct $1000 per child (under 16yo), that's a $2000 deduction, not $4000 as the article stated.

[Atlas Sneezed]

my MIL is on SS, she is old, she cannot afford half of her meds, and can only buy enough food for two meals a day.

She has no car, no luxuries like eating a chocolate bar, she cries her eyes out when she can’t give her grandkids a present at Christmas and birthdays.

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So give her some money! (I am.)

And consider how much better off she will be with the checks continuing to come under a business-friendly tax plan than if the system goes bankrupt.

Also, I’ll be glad to count on her vote for politicians who promise not to raise the tax rate.

[SaraJohnson]

That is all true. Now reduce it to a sound byte where the public can comprehend and caculate.

This is the problem conservatives have always had with the concept of flat taxes. The public can’t even figure out that if you make a million and pay ten percent, and if you make $30,000 and pay ten percent, the guy making less pays less than the rich guy even though they both pay the same 10% in taxes.

[abigkahuna]

No, prices would not go down. In the real world, prices would remain the same, with a someone pocketing the profit and then only paying a 9 percent tax on it. So companies could then see a nearly 25 percent profit by keeping the prices the same.

If I by a necklace for 50 cents and the market rate is five dollars. I make 4.50 on the necklace. Priced in that profit though, are the daily costs of doing a fair. The fuel, the food I have to spend—MY mortgage, insurance, etc.

My supplier is NOT going to sell me a necklace that comes from the Philippines at 35% less, cause prices ain’t dropping over there— and no way am I going to sell it for 35% less. It ain’t going to happen.

Many of us out there are not 9-5 clock punchers. Never could do that. So far I see this plan just absolutely killing me.

[Beagle8U]

Don't be such an a$$. He follows the current tax code, and takes every deduction and credit listed.

[atomic_dog]

Yes it’s going to cost some people more. The 47 percent of filers who pay no federal income taxes will at least pay something under 999. No I have no problem with people paying no taxes, it letting them vote that bothers me.