[SeekAndFind]

Can you help us out by computing what a person with an income of $40,000 will pay in taxes under 9-9-9 and under the current tax code?

Say this person has 2 children and a mortgage, under current tax laws, he probably pays NOTHING in taxes.

How much would he pay in taxes under 9-9-9?

[manc]

would that depend on what state they reside, for instance NH does not have a state tax where as NY does.

It could depend considerably I suppose on where they live.

[RobertClark]

The Current Tax Code vs. Herman Cain’s 999 Plan

Base income
Now = $40000
999 = $40000

Amount spent on non-taxable items = $15000
Amount not spent (put in savings) = $3000
Amount donated to charity = $1000

999 sales tax rate = 9%
999 income tax rate = 9%

Federal taxes
Sales tax = $1444
Income tax = $3510

Total federal taxes = $4954

999 after tax income = $35046

999 effective tax rate = 12.39%

The 15.3% payroll tax is eliminated under the 999 plan. If you get a paycheck from an employer, then your employer pays half of your payroll taxes behind the scenes. It’s part of your pay that’s hidden from you in the current system. It is possible that your take home pay will go up under the 9-9-9 plan by 7.65%. If you checked yes on the calculator, it was added to your current income number (which is why the 999 income number is higher).

Remember, that money spent on things like a mortgage payment, rent, utilities, etc are not taxed as a sale. So, money you do not spend on over the counter purchases DO NOT incur the 9% sales tax, just the 9% earnings tax.

[rolling_stone]

are you tring to freez a picture at an instant in time of what one would pay now and immediately under 999?

999 is not just an immediate proposal it is phase 1 of 2 phase plan. One must consider not just how much someone would pay in taxes, but how far what they had left would go. So if you spend every cent you make you will pay a federal (and in most states a state tax) for purchases of new items or services. (used are exempt) If you save for the future, you dont pay a federal sales tax only and income tax.

here is acalculator that might give a little info-caveat i dont know its veracity. I do know immediate taxes paid is only a small part of the plan, the economy will take off there will be 6 million new jobs your children will have a better prospects for a prosperous future than under current socialistic plans. If no changes are made do you think SS will be there for you and your children? This plan replaces the hidden taxes and increases the number of taxpayers from 50% to 100% . Yes some on the lower income levels may have to pay a little taxes, but consumer goods prices should come down also. Isnt it fairer to all that all pay something? It also takes the power away form Congress and gives it to the people where it belongs.

http://www.nerds4cain.com/Blog/archives/723

[Brookhaven]

Under the current code this person pays 15.3% in payroll taxes.

But as long as were talking about people that "don't pay anything in taxes", which party is that person most likely to vote for. Given that 47% don't pay any taxes now, and we'll be close to 60% in a decade, what do you think America will look like when the majority of people can voted themselves benefits from the government without any worry about where the money comes from?

Am I the only person that is horrified by the implications of the chart below?

I find the argument that "we can't run on increasing taxes on 47% of the population" weak, because the alternative will be to do nothing and allow the number of voters that pay zero taxes to continue to rise. That's unacceptable. Doing nothing is the same thing as losing, so we should at least try fixing the problem (and I think this is our last shot).

Oh, the answer to what will America look like when the majority of voters pay zero in taxes? Just look at the Occupy Wall Street crowd. There's your future America if we do nothing.