Posted on 10/19/2011 5:26:14 AM PDT by SueRae
It used to be that the sole purpose of the tax code was to raise the necessary funds to run government. But in today's world the tax mandate has many more facets. These include income redistribution, encouraging favored industries, and discouraging unfavorable behavior.
To make matters worse there are millions and millions of taxpayers who are highly motivated to reduce their tax liabilities. And, as those taxpayers finagle and connive to find ways around the tax code, government responds by propagating new rules, new interpretations of the code, and new taxes in a never-ending chase. In the process, we create ever-more arcane tax codes that do a poor job of achieving any of their mandates.
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CloseDavid Klein Republican presidential candidate Herman Cain's now famous "9-9-9" plan is his explicit proposal to right the wrongs of our federal tax code. He proposes a 9% flat-rate personal income tax with no deductions except for donations to charity; a 9% flat-rate tax on net business profits; and a new 9% national tax on retail sales.
Mr. Cain's 9-9-9 plan was designed to be what economists call "static revenue neutral," which means that if people didn't change what they do under his plan, total tax revenues would be the same as they are under our current tax code. I believe his plan would indeed be static revenue neutral, and with the boost it would give to economic growth it would bring in even more revenue than expected.
(Excerpt) Read more at online.wsj.com ...
“Cain need to get a couple of big companies and small business owners do the analyst. Say someone like Ford, let them show they can sales their cars for 10% less, pay their employees 10% more, hire 5% more people and still make more money. He would then have people really thinking.”
Now THAT’s a great idea. I wonder who would step up to the plate.
Pinging the Cain Train!
Perry loses cool in Vegas as Cain wins GOP debate 3400 to 999
http://www.redstate.com/gamecock/2011/10/18/garden-gate-attack-of/
Things get ugly in Vegas (Boortz)
http://www.boortz.com/weblogs/nealz-nuze/2011/oct/19/things-get-ugly-vegas/
Cain Maintains Positive Intensity as Recognition Grows
http://www.gallup.com/poll/150185/Cain-Maintains-Positive-Intensity-Recognition-Grows.aspx
Cain: Occupy Movement Should “Be Outside The White House” Not On Wall Street - MUST SEE!
http://www.realclearpolitics.com/video/2011/10/18/cain_occupy_movement_should_be_outside_the_white_house_not_on_wall_street.html
What You Should Know About the 9-9-9 Plan
https://www.facebook.com/notes/neil-daniell/what-you-should-know-about-the-9-9-9-plan/10150422133536416
Cain comes under attack at Republican debate
http://www.freerepublic.com/focus/f-news/2794791/posts
Fair, Flat and Final (anti 999)
http://www.freerepublic.com/focus/f-news/2794921/posts
The only people with the power to stop the fed is US....the voters and those who have "skin in the game".
What is the number...47% don't pay taxes, but yet get "credits", which gives them a refund on money they haven't paid?
Once they are forced to start paying up, like the rest of us, perhaps they will start paying a little more attention and get the heck off the plantation.
He must, however, require the repeal of 16th Amendment constitutionally authorizing the income tax, before creating a sales tax so we don't end up stuck with both.
That is a good thing. This will revitalize cities, reduce white flight and increase the property values of the cities. They will also bring jobs to where they are most needed and bring brown space in the cities back to the manufacturing status that they are best suited for.
I see no problem with a tax structure that incentifies people to live closer to the place of their employment. The zones would also be in towns and areas that have lost their factories. These are predominantly WHITE and lower/lower middle class areas.
In Ohio there are hundreds of small towns that grew around a single factory that has since been shuttered bringing depression level unemployment to the area. An empowerment zone would revitalize small towns as well.
The decrease in complexity and hidden taxes would create a huge boom in manufacturing in this country. The certainty of the tax code would make all businesses more comfortable in expansion.
Regardless, the tax code WILL be changed under Cain. He has made the lowering ,simplification and broadening of the tax base the signature item of his campaign.
Michelle Bauchman’s screeching voice, at least for me, drones out her message. I doubt that any on-the-street person would even know what a VAT tax is and when anyone hears the word I am a lawyer- that is an instant turn off.
Romney is the world's smoothest assassinator with words of every candidate.
Santorum keeps pounding the drum about how many times he has won Pennsylvania. Did he forget he lost the last primary to a fellow republican?
And Perry, well Perry was just Perry. Great Governor but not meant to lead a Country.
Newt came out on top but I don't think he has the personality factor that is needed to develop passion in the voters.
Herman held his own but was getting so pounded by the others who didn't have a clue about his overhaul of the IRS. He should have done a better job of explaining his plan beyond oranges and apples.
I think that the debate only did one thing, maybe, and that was giving one last chance to those on the fence with Perry. And I think Perry lost those folks to some other candidate.
I am still a devoted Cain fan, but he needs to put in simple terms how his tax plan will work for America. JMO
Look, I’m not passionately arguing in favor of the ‘empowerment zones’. Honestly, it doesn’t matter to me one way or the other.
On the one hand, I agree with everything that you said. I am a conservative. I don’t like favoritism or gov’t meddling in any way shape or form. (My knee-jerk reaction was a hearty “NO”.)
On the other hand, I do like anything that gets people productive, working and off the gov’t dole. There are millions of people trapped in a mindset of helplessness and hopelessness. Obviously, telling them, ‘get a job’ isn’t working. Giving them more money, benefits and things (rewarding them for not being productive) isn’t working either.
If encouraging business development in areas where the problems are the greatest breaks the cycle, then I don’t mind it.
I also think that deregulation and a tax break will encourage more inner city poor people to step up and actually be the one’s to START the businesses in these areas. It’s not just bringing business to the area. It’s bringing huge opportunities to the area at every level.
LESS welfare. MORE jobs.
I don’t live in these troubled areas. But my husband and I do pay taxes. If we can quickly lighten the tax payer load in a way that actually makes people more productive, then I’m happy.
hehe
Spotty, and nothing as comprehensive as the sales tax being proposed here.
Check this link for more info on hidden(embedded) taxes.
Examples of How Taxes are Hidden in the Price of Goods
Americans for Tax Reform (ATR) has calculated several examples of how taxes affect the purchase price of several goods and services. The ATR figures include the impact of all taxes — not just certain hidden taxes — on prices. According to ATR:
• Taxes account for 35 cents of the cost of a $1.14 loaf of bread.
• 18 cents of a 50-cent can of soda go toward taxes.
• 72 percent of the cost of a 750-ml bottle of liquor goes toward taxes.
• Taxes for an $80 hotel room average 43 percent.
• Taxes account for $63.60 of a $159 airline ticket.
• A $153.09 monthly utility bill consists of $39.35 in taxes.
• Over half the cost of a $1.33 gallon of gasoline is due to taxes.22
A 1992 Cato Institute study looked at taxes somewhat differently, calculating how much someone needed to earn to have enough after-tax dollars to purchase several products. The study concluded that a typical worker needed to earn $17,038 to buy a $10,000 car, and $2,556 to purchase a $1,500 computer.23
Yeah, but the people paying the tax are always the same people. It's time everybody paid something. If some welfare mom realized the money was coming out of her check, she may not be marching in the street for a teacher raise. We already have 47% not paying anything, what about the ones paying almost nothing? That would raise the level to probably 55% or so. These people get back almost all of what the company held out. If you make $40k and pay in $5k and get back $2k, you don't really pay attention when you only get back $1800. Most of these rubes figure the gubmint is a good thing that gives them money every year. You would be surprised at the number of people that would tell you they don't pay taxes but get money back from the government. Ask them how much they pay in taxes and they will likely say, "nothing". All they care about is the refund check and never think about how much the government kept. I've actually talked to people this stupid.
Pretty good commentary on your part. To me, the 999 plan was attacked with first grade ignorance - but defended only partially. The apples and oranges analogy was a good start, but I wish Cain had fully explained what that means.
Bachmann made the only logical case against 999 - one that as a supporter of 999 I myself would like clarified - but it was lost in the childish food fight.
According to the scoring report on 999, an 18% federal sales tax would be too low to reach 2008 revenue levels.
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How about taking some of those spending cuts Ron Paul has in mind?
When my revenue fall short I have to cut my spending.
Probably too novel of an idea for Washington - just like the idea of changing the Country’s tax code.
michelle bachmann’s on fox
lying again about 999 and cain.
So let’s all help Cain sell this plan. Our country really needs it.
I take exception to one point in the excerpt. The purpose of 999 is not just to lower rates and “simplify the tax code.” One of the very important purposes, which implements one of the animating principles of the Laffer Curve, is to BROADEN THE TAX BASE.
If we don’t do this now, the non-taxpayers will soon outnumber the taxpayers. At that point, it is game over. We will never have the votes to reject ever-more confiscatory tax rates (remember FDR took the top tax rate to 90%!) so as to pay for more and more free stuff for the parasites and the vote-buyers.
999 is critical to preserving our freedom, not just engendering our prosperity.
I agree that it should. With a lower corporate income tax, no more FICA (7.65% employee and 7.65% employer), plus lower employee federal income tax withholding, take-home pay should increase by at least 18%.
But there's nothing to prevent the employer from keeping this money as profit or passing it on to the shareholders.
He goes to visit a family who doesn't understand 999 and actually takes their current tax return, expenditures and applies his 999 plan - ACTUALLY shows them how much they can save under his plan. I'd love to see him visit a middle class, card carrying Union member!
One more thing to consider:
With the 9% sales tax and the 9% income tax, people in the EZs are still paying into the system. I believe that it’s only a tax break for the corporate tax.
Again, 999 puts a little bit of everyone’s skin in the game.
>>> But there’s nothing to prevent the employer from keeping this money as profit or passing it on to the shareholders. >>
Au contraire — his competitors.
You know, the free market? You might vaguely remember it.
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