Posted on 10/18/2011 2:41:08 PM PDT by Def Conservative
The Herman Cain campaign released details of the revenue expected to be collected from his 9-9-9 tax plan. Here are the estimates for 2010:
$701 billion from the 9 percent personal income tax. $753 billion from the 9 percent retail sales tax. $863 billion from the 9 percent business VAT. Yikes! By far the largest tax haul under the Cain plan would be from the business VAT—a tax which would be hidden from most voters.
By the way, the Cain business tax is not a tax on “corporate income,” as some media stories are identifying it. The new revenue data makes it clear that it is a tax on all value added by all businesses in the nation—corporate, partnership, and proprietorship.
Sorry Mr. Cain, I think your tax plan gives the federal government far too much room to grow in coming decades as entitlement cost pressures increase. I’d suggest dropping 9-9-9 and going with my 15-15-15 tax plan. After that, you could move on to proposing a detailed plan for spending cuts, as candidate Ron Paul has delivered.
Except Cain’s plan isn’t even close to a VAT tax. Anyone who has worked with EU corporations can spot the difference almost immediately.
A VAT taxes all level of production of an item or service. VATs can actually end up costing the end purchaser 27% to 30% more on the cost of an item- and this is in addition to the hidden corporate taxes already built in.
Cain’s plan is a flat 9% at the sales end and 9% to replace the corporate tax. That is a drastic reduction over the taxable expense corporations pay and pass on to the customer.
“But if prices stay the same, doesn’t the brand-new 9% Fed Sales Tax simply increase the cost of everything by 9%? “
Market forces will impact pricing downward under the 999 plan. As a small business owner I will take the payroll savings (fica,SSI ect) coupled with my lower income tax burden and reduce my retail pricing to grab a greater share of the market. I have already conceived of an advertising ploy that offers our customer our product at an out the door price whereby we will pay the 9%. I would hire more people and expand my operation in a heartbeat just knowing that my cap gains are no longer taxed and my overall income tax will remain at 9%. Multiply my business by millions of Sub S companies and America will rise from the ashes.
What I like best about the 9-9-9 plan is that everyone pays the tax, not just those in the upper 50%. The freeloaders in the bottom 50% will have start paying, just like the rest of us!
What I like best about the 9-9-9 plan is that everyone pays the tax, not just those in the upper 50%. The freeloaders in the bottom 50% will have start paying, just like the rest of us!
I have yet to see any two people really agree on what 9-9-9 means.
I find it funny, this same author proposed an almost identical corporate tax proposal in 2007.
http://www.cato.org/pubs/articles/edwards-taxnotes-laffer-curve.pdf
He basically makes the argument in that article for Cain’s 9% corporate tax he is now falsely calling a VAT.
The only difference, he is calling for higher rates- 15%.
Both. The article is saying there is no corporate income tax -- it's a VAT.
Then you add a federal sales tax.
While some will have their ox gored....tax accountants....the beauty of 999 is that everyone will share in the cost of government and suddenly become a little more fiscally conservative. Lobbyists will also lose an ox or two as it pertains to congressional tax loopholes. IRS employees could be sent to secure the border! lol
Investors worldwide fight to the death for a one or two percent edge. Can you imagine the flood of dough into our Country once cap gains is eliminated?
“I find it funny, this same author proposed an almost identical corporate tax proposal in 2007.
http://www.cato.org/pubs/articles/edwards-taxnotes-laffer-curve.pdf
He basically makes the argument in that article for Cain’s 9% corporate tax he is now falsely calling a VAT.
The only difference, he is calling for higher rates- 15%.”
Seriously, how bizarre is that!? This raises a lot of suspicion about this guy’s motive
Look at the last line at the source article.. He is pimping for Ron Paul... (and admits he is calling for the same thing,but at 15%).. lol...
LOL. So where does all our government debt come from, Sherlock?
Mystery solved ;-P
What I’m saying is, in order to shrink the size of government you can either 1) cut spending, or 2) cut its revenues. No one has had much success limiting its spending. If you limit its revenue, then you automatically limit its size. Oh, they can print money, and keep spending money they don’t have, but eventually the markets will stop that, just like they did in Greece.
So your economic plan is for the US to default? Get real. You can't "starve the beast." The only way to reduce the size of government is to CUT government. Period.
The flat income tax is a subtraction method vat.
currently, embedded tax represents tax costs of the seller - not tax costs of the buyer. In an embedded tax scenario, the buyer pays the seller’s taxes, not his own.
In 999 as I understand it, the buyer pays a portion of his own taxes in a purchase - and the seller pays a portion of his profits [which, oddly, ends up hidden!!!]
Any flat income tax IS by definition a subtraction method vat. The flat income tax you’ve heard about before 999 is a subtraction method vat. That’s one of the major reasons i do not want a flat tax.
I credit Cain for starting a fruitful discussion - in fact what I predicted he’d do. I had no idea he’d get this big... wonder if he’ll survive tonight.
Anyway, the measure I support is NO income tax and ALL retail sales tax.
Yup, just another goofy paultard:
“Sorry Mr. Cain, I think your tax plan gives the federal government far too much room to grow in coming decades as entitlement cost pressures increase. I’d suggest dropping 9-9-9 and going with my 15-15-15 tax plan. After that, you could move on to proposing a detailed plan for spending cuts, as candidate Ron Paul has delivered.”
Not that I have anything against spending cuts. I’ve always believed that’s where we should start. Get spending under control and taxes will come down.
My plan is and always has been:
Cut spending.
Cut regulations.
Cut government.
Cut taxes.
Rinse and repeat.
Simply abide by the constitution and all of our spending, taxing and nannystate problems are solved. Presto!
Exactly ... gov spending is the problem, till that is hit with a huge hammer, there is no tax fix. When will these supposed conservatives tell us how they will shrink government and government spending? Bunch of progressives I am thinking. Step up to the plate and show us what you are going to do.
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