OMG old people will be forced to eat cat food!!!!!!
Actually, they come out ahead on the 999 plan because you forgot to subtract the 15.3% payroll tax on the earnings which is eliminated by Cain.
And what about the unemployed? Don’t you care about the unemployed?
Scrapping our ridiculous tax code, lowering business taxes and eliminating taxes on capital will provide an environment for businesses to grow and provide jobs, and encourage businesses to locate in the United States as opposed to overseas.
It’s the same problem with any tax scheme. They can start it at any rate they want, to get it passed. But as time goes on, they can raise it to whatever they want for any reasons and rationalizations they want. Natl Sales tax, Flat tax, etc. Invent new taxes. Whatever.
I’m with you about the danger of the national sales tax growing, but I think this is less likely since it is very visible, unlike income tax hikes which are invisible.
But I have NO SYMPATHY for people who pay no taxes now as per your example. Everyone should pay something, instead of half the population paying NOTHING.
Fair tax is phase II
Purely unsubstantiated Dem scare tactic comment. The problem in this country is too many people skate on paying taxes so that they care little how they are spent and who they vote for. Maybe if this old couple payed on their side income, they would be less likely to pull the lever for freebies in the polling booth.
Here’s the problem. We’re in a mess. But nobody is willing to give up their piece of pie, or even make it a little smaller. Everybody agrees something must be done to fix the economic problems of this country...just don’t hit me up for any of the dough it’s going to take to fix it.
I totally believe in cutting spending, but there are so many entitlements that we can’t touch because of “political ramifications”...the elderly’s being one of the biggest, that it is hard to fathom how we can significantly reduce spending.
Laffer and Forbes support it. You don’t even give correct information.
And I’m willing to pay a little more in the short run as a very low income person in order to get government under control so I can prosper in the future.
9% of $2200 is $1980? That's news to me. And Cains plan, hich you fail it mention is a phanse out plan and into a complete "fair tax" system.
And why shouldn't someone pay taxes on $22,000 earned?
Meet The New Boss is correct. Also, with lower business taxes, consumers won’t be end up paying for the highest corporate income taxes in the world. Yes, they ARE paying the price of that now. Add to that the increased number of available jobs that they could choose from. So, your couple will make out quite well.
This is a horrible example and not truthful at all.
Secondly, assuming by some miracle the current income tax is abolished, the starting percentages of the 9-9-9 plan would inevitably increase over time. What's to prevent it from becoming the 99-99-99 plan?
Paraphrasing the other poster:
Smart man
Dumb plan.
Congress, even if the GOP controls both houses, is not going to overhaul the revenue system. They just won't.
“It will significantly increase your taxes!”
Lies..
It’s official folks. The Hermanator is the new front runner.
The problem of taxes is just too important to turn off our brains and let any one man do the thinking for us.
You can make $22,000.00 a year working as a greeter at wall mart?
The benefits far outweigh the cons. The IRS currently has almost 120,000 employees. The equivalent of about 6 Army divisions. I don’t even think we HAVE six active divisions in the US Army.
Shut down the IRS as we know it today. Give all the old employees a night stick and put them on the Mexican border.
And, yes, I’m another that thinks everyone ought to pay something. A big lie put out by the Democrat Party is that even though the “poor” may not pay income tax, they pay payroll taxes.
That might be true - until you factor in other deductions plus the wealth transfer payment better known as the Earned Income Tax Credit.
“999” upside down is “666”!!!
I think Cains “999” plan needs further clarification and also in depth studies need to be prepared. So far I like Herman, but his “999” plan raises many questions.
For instance:
Most states already have sales taxes. Let’s assume you purchase a new vehicle for $40,000.....
A 9% National sales tax would be $3600 and a State sales tax @ 7.75% would be $3100 equates to $6700. In addition vehicle license fees and other fees could push taxes another $600 or so (estimate)...and don’t forget the fuel/energy taxes and all other BS taxes. Talk about being in the poor house.
Proposed Solution....
I think we need a 111 plan!
Cain is a fraud and a shyster and a relentless self-promoter. He probably dreamed this thing up while he was in the shower one morning. The country is in trouble, he thought; people dial 9-1-1 when they need help. Ah! A brilliant idea! I’ll dream up a tax plan and call it 9-9-9! That’ll get me the publicity and boost I need among the simpletons who’ll latch onto anything that sounds good even if on close examination it makes no sense.
When Chris Wallace asked him for the names of the famous economists whom he claimed helped him develop the plan, he couldn’t name one. He said they didn’t want their names released to the public. Wallace didn’t let him escape with that dodge and he pressed Cain, “Well, if it’s such a good plan and they’re proud of it, why wouldn’t they want to take credit for it?” Cain had no answer. Of course not.
Take an average family in this country - husband, wife, and two kids. Give them the median family income of $49,500 per year. Now look at their taxes. Individual deductions are $3650 for each person, standard deduction is $11,400 for a total of $26,000 in deductions and a taxable income of $23,500. That gives them an income tax of $2687.50. The current child tax credit brings that down to less than $700 in taxes. The Make Work Pay credit brings them to zero. So all our family pays is the Social Security and Medicaid taxes of 6.5%, for a total tax bill of about $3200.
Now lets look at them under the Cain plan. No individual deduction. No standard deduction. No credits. Just a flat tax of 9% for a tax bill of $4455. That's an increase of $1255 in income tax alone. But Cain does allow a deduction for charity, so let's say that they tithe 10% of their income to their local church so they can take advantage of the one deduction Cain's plan allows. That reduces their taxable income to $44,550 and gives them a tax bill of $4009. Still an increase.
Now, of that remaining income available to them, our couple will pay an extra 9% on everything they purchase. Every article of clothing. Every bite of food. Every service they contract for, including rent if they don't own their own home. That's easily another $3000 or so in taxes. So under Cain our couple has seen their taxes go from about $3200 to upwards of $7000. Their taxes under Cain easily double.
Can someone explain why anyone would vote for a man hell-bent on doubling their taxes?