Posted on 10/12/2011 12:42:43 PM PDT by Fred
Well, I see you are all about trashing Bubba. WHo is your candidate or are you a Dem just here to make sure Perry does not get any positive comments? Hummmm?
Yes, but on the other hand, we'd have a president suggesting people buy goods second hand. WTheck? That's only part of it. I just don't like the idea of something so drastic in such precarious times.
I like Herman Cain a lot. But if this plan fails, we are screwed.
That’s not it at all. No one’s ever going to be perfect. But I have a right to question this drastic plan considering this *is* Cain’s biggest selling point. Don’t get me wrong, I like the guy a lot. He’s my fave right now. I think he would be an excellent president. I just don’t like the ramifications of a national sales tax, and Cain needs to do a better job of explaining it.
No problem. I was in a hurry and stopped looking after the October 12 part. :)
LOL
How many FReepers have THIS info on Cain?
Bio on Herman Cain;
Herman Cain is running for president. He’s not a career politician (in fact he has never held political office). He’s known as a pizza guy, but there’s a lot more to him. He’s also a computer guy, a banker guy, and a rocket scientist guy.
Here’s his bio:
* Bachelor’s degree in Mathematics.
* Master’s degree in Computer Science.
* Mathematician for the Navy, where he worked on missile ballistics (making him a rocket scientist).
* Computer systems analyst for Coca-Cola.
* VP of Corporate Data Systems and Services for Pillsbury (this is the top of the ladder in the computer world, being in charge of information systems for a major corporation).
All achieved before reaching the age of 35. Since he reached the top of the information systems world, he changed careers!
* Business Manager. Took charge of Pillsbury’s 400 Burger King restaurants in the Philadelphia area, which were the company’s poorest performers in the country. Spent the first nine months learning the business from the ground up, cooking hamburger and yes, cleaning toilets. After three years he had turned them into the company’s best performers.
* Godfather’s Pizza CEO. Was asked by Pillsbury to take charge of their Godfather’s Pizza chain (which was on the verge of bankruptcy). He made it profitable in 14 months.
* In 1988 he led a buyout of the Godfather’s Pizza chain from Pillsbury. He was now the owner of a restaurant chain. Again he reached the top of the ladder of another industry.
* He was also chairman of the National Restaurant Association during this time. This is a group that interacts with government on behalf of the restaurant industry, and it gave him political experience from the non-politician side.
Having reached the top of a second industry, he changed careers again!
* Adviser to the Federal Reserve System. Herman Cain went to work for the Federal Reserve Banking System advising them on how monetary policy changes would affect American businesses.
* Chairman of the Kansas City Federal Reserve Bank. He worked his way up to the chairmanship of a regional Federal Reserve bank. This is only one step below the chairmanship of the entire Federal Reserve System (the top banking position in the country). This position allowed him to see how monetary policy is made from the inside, and understand the political forces that impact the monetary system.
After reaching the top of the banking industry, he changed careers for a fourth time!
* Writer and public speaker. He then started to write and speak on leadership. His books include Speak as a Leader, CEO of Self, Leadership is Common Sense, and They Think You’re Stupid.
* Radio Host. Around 2007—after a remarkable 40 year career—he started hosting a radio show on WSB in Atlanta (the largest talk radio station in the country).
He did all this starting from rock bottom (his father was a chauffeur and his mother was a maid). When you add up his accomplishments in his life—including reaching the top of three unrelated industries: information systems, business management, and banking—Herman Cain may have the most impressive resume of anyone that has run for the presidency in the last half century.
I am not (at least not yet) a Cain supporter, I have concerns about all the candidates in the race, and I have not yet decided what I think about the 9-9-9 plan. However, I do think that the visibility of the tax could be a positive. Our national payroll tax deduction system had made our taxes invisible to a certain extent; unless we're self-employed and send quarterly checks to the feds, most of us never see the money we're paying in taxes, and many of us deliberately have extra money withheld each month so we get a tax refund.
Seeing every time we go to the grocery store that we're paying 9 percent federal sales tax could be a strong barrier to raising taxes beyond that percentage simply because we see how much we're paying every time we buy something.
I agree that seeing a tax every day is a way to keep it in people’s minds but that is exactly why it will hurt the candidate that proposes it. I’m not sure how many states have no state sales tax (very few I know) but any candidate that proposes adding a federal sales tax in those states will lose those states by double digits no matter what his position on other issues. And what about a state that has high sales tax already? You’re going to propose adding ANOTHER 9% on top of that? I don’t care how much you say you’re going to cut their income taxes that just isn’t going to fly.
No I’ve been a freeper for a while. For some reason I couldn’t get back on with old name “teddyballgame” and password so I logged on new, “teddyballgame1”. I like Cain and may still vote for him. I just think he’s got a long way to go. He’ll start getting a lot of scrutinty. Not crazy about a 9% sales tax. Thats not gonna fly with a lot of people.
Cain needs the fire from the others for practice before the main event.
And that 9% not going going to stay at 9% percent for long.
That’s the other problem - he already said these rates could be raised with 2/3 vote.
Well, drastic times call for drastic measures. The present system of increasing taxes, and increasing spending perpetually has put the US in as big a hole as they have ever been since 1946. We need a 1946 style budget, slashing spending drastically.
“Most people don’t care about the corporate tax rate and most people are in the 15% bracket, not the 30%.”
They should because it affects the price of everything that they buy.
“The 9% sales tax rate will likely increase their total tax burden”
Doubtful. When coupled with this cut to corporate taxes, prices will likely go down. Even if we assumed that prices did not go down, let’s look at this.
Say you make 50k a year. With this plan you’d get to keep about 6 percent of that, which is about 3k. You’d get that now, not in a year. Say interest at 5 percent on this 3k would net you about 150 bucks in interest.
Now, say that you’re paying 9 percent on stuff that used to have no tax associated with it. You’d have to spend 1667 dollars just to wipe out the gain of 150 bucks that you make over the year. That’s 1667 on stuff that’s not housing or mortgage payments. That’s about 4 months household spending.
“Also, what about deductions - does his plan do away with mortgage deductions, most corporate deductions (except for actual costs), etc.?”
I believe they all go away. This is a good thing. The reason why housing is inflated relative to other commodities is because of the mortgage deduction. If that goes away, housing prices will drop.
For someone making 50k a year, assuming that prices rose 9 percent, the additional tax would be about 120 bucks over the course of a year, and assuming that you receive a refund of zero every year on your taxes.
If you were able to save and invest more of your money, then you’ll actually come out ahead. So it’s a trade off. Your expenses cost more, but you have more freedom to do what you want with your money.
Anybody who’s not in the 15 percent bracket will come out ahead, assuming that prices rise 9 percent. Now, this is just the first year. If the economy is expanding and wage growth outpaces inflation, then while you will lose money in the first year, you’ll be ahead every other year after. A 1 percent growth in your income over inflation after the first year will pay off everything you lost in year one, and more besides.
That may be true for the average year, but do you want to pay a 9% Federal tax if you buy a house, a car, or other large purchases? Also what is it going to take in Federal employees or contract employees (tax dollars still pay for them) to administer this thing. Doesn’t seem like there will be any savings from the current IRS Behemoth.
9% would apply to home purchases?
So buy used. I’ve never bought a new car, and I doubt I ever will.
“Also what is it going to take in Federal employees or contract employees (tax dollars still pay for them) to administer this thing.”
They won’t be administering it. It will be issued at the point of sale.
“Doesn’t seem like there will be any savings from the current IRS Behemoth.”
You don’t find paying 9 percent of your income to be slightly easier than the current system? There will be considerable cost savings for the overall administration, just from the tax code simplification.
Piggish, woman-hating humor.
Thank you, thank you Mods for taking down that awful picture! Bless you!
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