Dividends are taxable under 9-9-9 (for the individual; Cain says 9-9-9 eliminates “double-taxation” of dividends, but gives the deduction to the business, according to Americans for Tax Reform’s analysis.
If you are carrying capital losses, like many of us are, we lose them under 9-9-9. Unless the politicians figure out they can’t take away a carry-forward capital loss, so they’ll have to grandfather that in; whether they would also grandfather in unrealized capital losses, or risk large sales and market disruption as people try to grab their losses and push their gains forward is an open question.
Why do you think the current tax code is so complicated? Under 9-9-9, you still have to report all of your interest income, and I believe your dividend income. If you do contracting you still have to do some sort of business tax reporting.
OK, so they eliminate deductions — you could have taken the standard deduction any time you wanted, and saved all that work. And when I was audited, it was because they thought I didn’t report an IRA contribution properly. Is Cain eliminating IRAs? I also got hit once because I put my daughter’s SS on wrong. I suppose if I can’t deduct my dependents that wouldn’t happen, but I thought Cain still let us have our dependents, otherwise a family of 4 might pay the same tax as a single person making the same amount, even though the family of 4 has much less money to afford to pay in taxes.
And you will still get audited if they think you are cheating by getting paid under the table, or if you were selling stuff that was new and owe the sales tax. The idea that nobody could cheat on their taxes under 9-9-9, and therefore there’d be no audits, is silly.
I don’t get the “complicated tax code” anyway. Turbotax is $35 bucks, and I just enter the numbers, and electronically transfer the results. It takes a few hours and I’m done.
9-9-9 Plan: Summary
•Removes all payroll taxes and unites all tax payers
•Provides the least incentive to evade taxes and the fewest opportunities to do so
•Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etc…
•Is fair, simple, efficient, neutral, and transparent
•Ends nearly all deductions and special interest favors
•Features zero tax on capital gains and repatriated profits<++++++
•Exports leave our shores without the Business Tax or the Sales Tax embedded in their cost, making them world class competitive. Imports are subject to the same taxation as domestically produced goods, leveling the playing field.
•Lowest marginal rates on production
•Kills the Death Tax
•Allows immediate expensing of business investments
•Eliminates double taxation of dividends <=================
•Increases capital formation which aids capital availability for small businesses
•Increased capital per worker drives productivity and wage growth
•Features a platform to launch properly structured Empowerment Zones to renew our inner cities
•The pro-growth, pro-job, pro-export economic policies of the 9-9-9 PLAN equals a strong dollar policy
You are NOT 100% correct on tax on dividends. Currently the corporate dividends are paid out of AFTER TAX profits. Then the recipient of dividends pays tax again. Check the dividend line above marked <======.
Elimination of death tax would be a wonderful gift to our heirs. The worst thing I hate about current tax system is having to maintain records for decades on my long term investments for computing capital gain/loss when sold. All that paper work goes away with 9-9-9. Check line marked <++++++.
You can’t be serious when you claim current tax calculation is not complicated. I literally spend several days on collecting all the tax forms, and I get upto 40 or 50 1099’s. Then there is calculations for kids with their income and how it affects my tax return.