To: Fred
Seniors on Social Security pay no income taxes on their benefits if they have no other income. Cain's plan places a 9% sales tax on their purchases. Tax increase? Check.
Seniors on Social Security with other income pay taxes on the other income and part of their Social Security benefits. A couple getting $25,000/year in SS benefits and earning another $25,000 in income would pay something like $850 in taxes. Under Cain's plan, they would pay $2,250 in income taxes on the $25,000 wages plus be subject to a 9% national sales tax. Tax increase? Check.
Seniors who fall into the lower tax brackets pay a 0% or 5% capital gains tax. Cain's plan is a flat 9%. Tax increase? Check.
Seniors who fall into the higher tax brackets pay a 15% capital gains tax. Cain's plan is a flat 9% on that income, plus a 9% tax on the spending of that income. Tax increase? Check.
Basically, seniors won't see a tax increase if they don't spend their money.
166 posted on
10/12/2011 1:12:12 PM PDT by
DTxAg
(The Presidency is not an entry-level position.)
To: DTxAg; All; Brookhaven
167 posted on
10/12/2011 1:37:55 PM PDT by
Fred
(But we are never going to survive unless we get a little crazy)
To: DTxAg
Capital gains tax is cut to zero and it is not considered income subject to tax.
So your last two scenarios aren’t accurate.
I know lots of Seniors up in The Villages and many love Cain. They understand the tax plan and they’re willing to support it if it means turning things around.
They have children and grandchildren who will benefit from this plan. Apparently not all Seniors are selfish bastards like the ones in the AARP commercials.
168 posted on
10/12/2011 1:43:13 PM PDT by
GatorGirl
(Herman Cain 2012)
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