Since Cain has offered no tax caculator site to refute this kind of analyses of his tax plan, the media gets to define and caculate it for him.
Although simplifying the tax code is an important part of ending government corruption via buying loopholes, it will be protrayed as a tax increase on the middle class at a time when the middle class is suffering under the weight of this economy. It also is slammed for introducing a new consumption tax that we all know would not stay stagnant at 9%.
The 999 plan is a very weak campaign centerpiece when it comes to the general election.
I have brought this up to Cain on twitter. In some areas of California there is a 10% sales tax. His plan means 19% tax on everything we buy.
Plus, a national sales tax is just too easy to add one more penny. No one cares about one penny, right?
If he takes away the mortgage interest deduction, we will be punished for owning a home with property taxes. It will further harm the housing market because people will say, bad market, I have lost equity, why own now?
I’m puzzled by some of the press claims about 9-9-9 since it includes sweeping generalizations and assumptions that are not part of what Cain’s outlined on his site. Is there some super secret version of 9-9-9 the press has to work from that we do not? Obviously there’s a more richly detailed version because Cain said he had it independently scored.
“That means under the Cain plan that family could end up paying $2,725 more”
They forgot to facture in a buch of stuff
That family spends $3,000.00 a year in gas, the tax rate on that gas will go down from (Fed only)15% ($450) today to 7% ($210) they saved $240.00
That family buys a new SUV, lets hope a Ford
$35,000
Say Fed Tax Ford paid to make that car is about 20% to make it and is passed on to that family in the price of the car so $35,000 is now $28,000. add new 9% sales tax and they pay $29,960.00
They Saved $5,040.00 in Taxes plus $240.00 in gas = $5,280.oo in tax saving for that family
That’s just 2 items, same thing would happen to most goods they purchased.
So Cain just cut their taxes
They forgot to factor in a bunch of stuff
That family spends $3,000.00 a year in gas, the tax rate on that gas will go down from (Fed only)15% ($450) today to 7% ($210) they saved $240.00
That family buys a new SUV, lets hope a Ford
$35,000
Say Fed Tax Ford paid to make that car is about 20% to make it and is passed on to that family in the price of the car so $35,000 is now $28,000. add new 9% sales tax and they pay $29,960.00
They Saved $5,040.00 in Taxes plus $240.00 in gas = $5,280.oo in tax saving for that family
That's just 2 items, same thing would happen to most goods they purchased.
So Cain just cut their taxes