those making $20,000 to $30,000 would see a $3,800 (15 percent) tax increase.
“those making $20,000 to $30,000 would see a $3,800 (15 percent) tax increase.
This presumably ignores the repeal of the payroll tax, as well as the price reductions in goods due to the reduction of embedded taxes.”
Considering the Earned Income Credit (i.e., where the government write you a check, rather than you paying any income...as long as you file)...yea, it’s about time to SCRAP IT, once and for all.
If you read it their whole analysis is flawed. They try to equate all the taxes to a relative Sales tax amount and get 27%. The then apply that rate to everyone as the “Tax Burden”. The plan is not structured that way and it is an insane way to approach analysis.
I don’t think so. My cpa and I both did the calculations using my 2010 federal taxes for comaparison and I would take roughly an additional $4100 hit with the 999 plan. It matches well with this report. People are jumping on board this plan without actually seeing how it affects them. Wake up people.
It probably ignores the reduction in price of goods, because so far as I can tell, there won’t be a reduction in the price of goods. People who claim that forget that current taxes, though high, are only paid on profit, while the new sales tax is paid on the entire cost of goods.
They also ignore that Cain gets rid of corporate deductions, so the 9% tax is applied to 2-3 times as much of a corporation’s earnings as the current tax is. For example, Cain doesn’t allow a deduction for the cost of wages, which means it effectively taxes the employee’s pay 9% at the employer side. That is more than the employer payroll tax right now. So the employer actually pays MORE in tax per employer under Cain then under the current system.
Look — Cain’s plan is revenue neutral. That means it raises just as much in taxes as the existing plan. And it is also obvious that rich people pay a lot less under Cain — that’s because rich people already lose their deductions in existing law, so cutting deductions doesn’t hurt them, and they paid the most now.
If the rich pay less, the poor have to pay more. And sure, WE like that, but the average american will NOT like it.