Posted on 10/26/2011 11:30:19 AM PDT by justsaynomore
BOTTOMLINE:
Herman Cain’s 999 Plan would raise almost the same amount of taxes as our present system (i.e., revenue neutral). The higher-income people would save the most under the 999 Plan; but here is the good news: They are the people who create the jobs for the rest of us! The more money the higher-income people do not have to send to Washington, D. C., the more they will invest in jobs for the rest of us Americans. The 999 Plan would completely rejuvenate our country and would put huge numbers of Americans back to work. The 999 Plan’s pro-growth emphasis will light a fire under our economy and create millions of new jobs.
A predictable, business-friendly tax system will encourage businesses to expand and create jobs because the job creators will know what to expect in the future — no surprises. Herman Cain’s 999 Plan indeed is about “Jobs, Jobs, Jobs.”
Please read further to understand the details of Herman Cain’s 999 Plan.
INTRODUCTION
Presidential candidate Herman Cain has rocked the country with his bold but simple plan to ignite our economy. His “999 Plan” calls for an individual flat income tax rate of 9 %, a business flat income tax of 9 %, and a national sales tax of 9 %. Herman Cain’s plan does not affect state sales taxes; it only applies to federal taxes.
The plan is simple but will it work? This is the question everyone is asking. This relatively short and straightforward report will offer some answers and explore various aspects of the 999 Plan.
I have prepared examples to show how much tax you would save under the present tax system and under the Cain 999 Plan. These examples cover income levels from $25,000 to $1 million per year. Please refer to the second half of this report to view this information.
**If you do not care about the background details of the 999 Plan, and you mainly want to know how much a family making $75,000 per year (for example) would save under the Cain 999 Plan, please go straight to the section entitled “Section VIII. Comparison… ”
Read the rest at http://www.voicesempower.com/articles/
Why would the Democrats risk alienating the poor and blue collar workers? They wouldn't.
Don’t bother reading the whole thing. The author completely misinterprets Cain’s business tax as a corporate income tax. It isn’t, so his analysis is a waste of time.
Plus, the website opens an annoying audio/video that you have to scroll down forever to find and close...
One question here. Does the 9% National Sales Tax apply to homes and cars? If so, this is a big chunk of money and when does it have to be payed? Would this not hurt home sales and car sales?
Don’t bother reading the whole thing. The author completely misinterprets Cain’s business tax as a corporate income tax. It isn’t, so his analysis is a waste of time.
Plus, the website opens an annoying audio/video that you have to scroll down forever to find and close...
Yep, I’ve been saying that the whole time
Because every tax is visible, and a large majority of democrat voters will be paying taxes, the plan is “booby-trapped” so they cannot raise the rates.
Only new homes, new cars. Not used.
I have run the numbers on myself, even if I spend 75% of my income on new goods, I still come out better.
That’s a good point.
Three questions, you mean.
Yes, the national sales tax would apply to cars and houses, but only to new ones, not used ones.
It would be paid up front, but in both cases, people usually borrow to buy cars and houses, so they’d probably borrow the tax and pay it back in payments over time.
It would actually make used cars and houses more attractive, possibly helping to clear the housing markets, and yes, it would probably hurt the sale of new cars and houses, although the fact that people borrow most of the money to buy those two items would probably disguise some of the pain of the higher costs.
Plus, there are federal taxes in everything you buy now; they’re just well-disguised as personal income taxes on employees, SS/Medicare taxes on employees, income taxes on corporate income, etc. Those taxes would disappear under 9/9/9 and be replaced by Cain’s tax structure. To the extent that the total tax take by the feds remained about the same, so would product prices (including the national sales tax), since products have to be sold at prices that reflect all the various taxes being paid by the company and its employees. These are all costs of doing business now and would remain so under Cain’s plan.
To take one example, if the CEO of a company is getting $5,000,000 and paying 35% in taxes he’s only netting $3,500,000. Under Cain’s 9%, he could net the same $3,500,000 by being paid only $3,850,000. If the board is on their toes, they’ll cut the CEO’s salary to reflect that, and be able to cut product prices accordingly. Of course the prices would go back up by the 9% sales tax, but the point is that it should all net out about where we are now if the total federal tax take is about the same as it is now.
And, yes, I know the board might not be on their toes...and there are lots of other considerations...
born December 13, 1945 in Memphis, TN (Meets the Jus Soli Requirement)
Parents were
Luther Cain Jr., born March 16, 1925 in TN, died March 29, 1982 in Atlanta, GA
Lenora Davis, born July 27, 1925 in GA, died August 20, 2005 in Atlanta, GA
Both parents were US Citizens at the time of his birth (Meets the Jus Sanguinis Requirement)
Herman Cain is a NATURAL BORN CITIZEN
Barry Soetoro aka Barack Hussein Obama ISN'T!
Click on the cane.
I sincerely applaud Cain’s efforts here. Perry’s as well. That said, I think ANY plan that would even be remotely taken seriously is too little, too late. No, correct that. It is WAY too little, WAY too late. If this plan was implemented around 2006 it would have only been too little, too late. It’s too late for even that.
I’ll cast my vote for Cain, though, assuming there is an election.
One question here. Does the 9% National Sales Tax apply to homes and cars? If so, this is a big chunk of money and when does it have to be payed? Would this not hurt home sales and car sales?
You buy a $200,000.00 new home and it will cost you $218,000.00
You buy a $200,000.00 used home and it will cost you $200,000.00.
The taxes more then likely will be rolled into you monthly payments. paid to Govt by the one who finances you home.
But we have a huge supply demand issue in the housing market today. There are more used houses then buyers and to many new home being built. 999 will help solve that.
Car
You buy a $30,000.00 new car and it will cost you $32,700.00
You buy a $30,000.00 used car and it will cost you $30,000.00.
But what you may not be seeing is in the price of that $30,000 car today there is avg of 22% Fed taxes built into the price
Under 999 this goes down to 9% (actually less because other cost go down, labor, supplies)
This will allow price of new car to drop to compete better with used cars. They can drop Sale price up to 11% and still make same money they are today. They won’t have to drop price but they lose sales because people will turn to used cars.
So people that say prices won’t go down and companies will keep the tax saving are off. 999 is a win/win. If Companies make more money they will pay people more and hire more people and invest in more stuff.
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