Cain's 9-9-9 Plan Would Cut Taxes For Millionaires; Raise Them For Poor

NPR ^ | October 18, 2011 | Eyder Peralta

[mdittmar]

The first detailed analysis of Republican presidential candidate Herman Cain's 9-9-9 tax plan found that it would cut taxes for Americans making $200,000 or more a year and raise taxes for those making less than $200,000 a year.

The analysis was released today by the independent Tax Policy Center, a joint venture by the Brookings Institution and the Urban Institute.

Cain's 9-9-9 plan, which would institute a flat 9 percent business, individual and national sales tax, has been credited for catapulting the former Godfather's Pizza CEO to the top of the Republican race.

The Tax Policy Center found that if the plan were instituted, those making more than $1 million would receive a $455,000 (15 percent) tax break, while those making $20,000 to $30,000 would see a $3,800 (15 percent) tax increase.

Derek Thompson of The Atlantic put together a graph with the information from the Tax Policy Center. It shows the percentage change on effective tax rate by annual income:

[muawiyah]

History is relevant to this debate. If you don't think so that pretty much puts you in the Khmer Rouge category of profound thinkers.

In fact, ignoring history is pretty much the hallmark of Far Leftwingtard thinking.

[org.whodat]

Love these, let's have a group hug for the IRS. As Mark Liven would say, idiots.

[wac3rd]

NPR. The mouthpiece of the Regime and Global Communism.

These maggots love to lie.

[muawiyah]

In this state they don't care if you qualify for EITC. They collect state income tax. They also collect state sales taxes. They collect various excise taxes ~ as does the federal government.

If you die the state will collect an inheritance tax.

Some of you guys are totally mind numbed if you think states don't collect taxes.

[org.whodat]

What he said was, that the federal government has nothing to do with the state tax, they never had before so why would they now.

[Randy Larsen]

Millionaires cannot escape the 9% sales tax no matter how hard they try.

999 works for me.

[muawiyah]

You want a personalized answer ~ you'd tax the special mittens off an impoverished burn unit patient wouldn't you.

Your attitude is prettymuch consistent with Obama's ObamaKKKare idea that medical supplies and instruments should be subject to a special tax over and above whatever else they were taxed for.

[Gator113]

There is an oder about you.

[CharlesWayneCT]

We’ll see. Look at the Cain plan. It tells you exactly how he plans to implement the 9-9-9 plan. He wants the supercommittee to “pass” the plan, when they do their deficit reduction.

The supercommittee isn’t authorized to do this 9-9-9 plan, because it is revenue neutral. So he is asking them to do something outside their scope. When the debt ceiling was passed, conservatives were upset about this supercommittee, because of the fear it would tack on things having nothing to do with deficit reduction, and the congress would have to vote on it.

Because the supercommittee recommendation cannot be amended, and it is not debated in committee. It is an up-or-down vote, and a down vote means heavy cuts to military spending.

So Cain’s plan is to have the supercommittee “pass” 9-9-9, and congress vote up or down without amendment, and have Obama sign it.

Still think it is a serious plan? Then contemplate THIS — the supercommittee has to finish their work by thanksgiving. That’s a bit more than a month. Their schedule has all proposals due next week, so they can put them together.

If Cain wants them to pass 9-9-9, he has to submit a full legislative proposal to the supercommittee — unless he is expecting the ocmmittee to write his bill for him.

So, has he written the legislative bill yet? I haven’t seen it. Has he submitted it yet? I haven’t heard of it.

If Cain doesn’t submit a legislative version of 9-9-9 to the supercommittee, and then lobby hard to get them to consider it, he will have failed to do what his plan calls for.

[chuckee]

I agree that there should be another alternative to the progressive income tax. That is why I support the fair tax so everyone except the poorest have skin in the Federal tax game. Where I disagree is if we have a progressive income tax only the top 2% should pay federal income tax. What got us into this spending spiral is that there are enough folks close to 50% who pay no Federal income tax and have no compunction about lobbying for Federal entitlements that they do not have to pay for. These folks are the Democrat wheelhouse.As long as we have a Federal income tax, we need to broaden the tax base so these 50% pay some amount of Federal tax so they understand there is a consequence for their demands for “stuff”.

[muawiyah]

Illegals were getting ADVANCED EITC. Advanced EITC was eliminated because of that. End of story.

[muawiyah]

This all changes when we kick the Democrats out of government. Then we don’t need a Super Committee.

[Reily]

The current price of a product includes all the federal corporate taxes of each ingredient as well as the federal corporate tax of the manufacturer that assembled the product. The national sales tax as envisioned by Cain would eliminate all those taxes that are embedded in the price you pay. (The figure I have seen for this hidden tax is roughly 35%.) This means the price of the final product would go down. How much, hard to say but very likely more then then 9%. The federal government would collect its tax at point of sale, Cain's 9% sales tax in the 9-9-9. Remember you pay for all those current corporate taxes now its hidden in the price. So the federal government does collect that hidden tax. Today even if you only pay state taxes on a product you are still paying that hidden federal tax! With Cain's 9-9-9 and when it transitions to a all sales tax system, the federal taxes are not hidden. They are collected at point of sale. A national sales tax would be a boob to savings, in fact a 2 income family could bank much of the 2nd income if they choose to, by not using it to purchase anything. Now remember the Cain plan does not include Social Security, Medicare deductions, etc. Those would still be deducted, and is a separate problem. Its only about your federal income tax. Also state taxes are just that state taxes and are a problem between you and your state legislator. Something Dave Gregory on “Face the Nation” couldn't understand. Stupid stupid man!

[muawiyah]

You are still playing the game with the Democrat handbook. That was wrong ~ remember the "elderly" who used to be their pet "minority". Now the elderly vote Republican.

The poor used to make a pittance and live in falling down houses with holes in the walls. Today things have improved.

You may think poor people vote for Democrats because they imagine they give them stuff but the reality is the Democrats steal a lot of stuff and their old story about being the saviours of the poor has a lot of holes in it that people can see through.

Now that you are a Republican you have to view this nation as an opportunity to be dealt with in a responsible fashion. Kicking people in the gutter and handing all the bucks over to a few warlords is not part of that deal. At the same time letting your friends steal isn't part of it either.

[magritte]

I have seen the phrase “eliminate all the hidden taxes” many times, but no listing of what those “hidden taxes” are. Do you have a list or a link to it?

[plain talk]

I was just responding to your statement where you said “What is wrong today is that ONLY HALF the people escape the federal income tax when 98% should rightly escape it.”.

So forget history - do you believe going forward that only 2% should be taxed and not the other 98%? If you can’t give a yes or no answer to that question then there is nothing else I wish to discuss with you.

[Aliska]

Thank you. I remember him explaining that, just a lot to take in at once.

[muawiyah]

I gave you the answer ~ the proof's in the pudding. The tax that was established by changing the Constitution itself was INTENDED TO TAX ONLY THE TOP 2% AT MOST. It failed.

The fact that it failed is the reason to RESCIND the 16th amendment ~ END OF STORY.

This has nothing to do with what the correct rate of taxes ought to be or whether or not you should tax babies coming down the birth canal (which I am sure some on this thread intend).

It is whether or not the income tax failed or succeeded in all that was promised for it.

Someday you will learn how to debate well and will learn to listen to what the other guy is saying. Then you will become dangerous.

[muawiyah]

We just had an IRS agent visit this evening. He says they have course work that identifies all the federal taxes. They get tested on their knowledge of these things.

It's HUGE!