Posted on 10/17/2011 11:08:56 AM PDT by RockyMtnMan
>> “Palin and Perry endorsed TARP also” <<
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Weak argument, in Palin’s case anyway, since she had to hew to the McCain position in her interviews. Perry will not be an issue in this election.
Cain’s plan doesn’t reduce the total taxes paid. So it can’t “reduce prices of goods” due to lower taxes.
I’ve looked at a lot of corporate annual reports the past few days, and I have yet to find a corporation that paid 22% of their sales in taxes. They pay a fraction of that. They pay at worst 35% of their PROFIT in taxes, but their profits are just a small portion of their sales.
If a company has $1 million in sales, and makes $100,000, they pay $35,000 in tax. Under Cain, they only pay $9000, so they save $26,000. The products drop in price by $26,000/$1,000,000, or about 2.6%. But the entire $1 million is now taxed at 9%, or an extra $90,000 in tax. So the cost at purchase increases.
In many cases, the company itself will save money because the materials IT buys will also drop slightly in price. But the 35% corporate tax includes hundreds of deductions, credits, and depreciation schedules which essentially put lots of the costs of business off the tax roles. Cain eliminates all of those. He even taxes the money paid to employees, and notes that this lowers the tax rate while broadening the amount of revenue that is taxed.
People posting these “comparisons” completely ignore the elimination of deductions, both at the corporate and individual income tax level. Individuals lose their child tax credits, their dependent deductions, their marriage penalty deductions, their mortgage interest deductions, their state sales tax deductions, their medical payment deductions. My taxable income would increase by over 20% under Cain’s plan. Then I’ll get lower tax rates, so it will work out ok, but it’s false to claim my marginal tax rate goes from 35% to 9%, because I’ll be taxed on an extra 20% of my income.
If he doesn’t keep deductions for 401K and IRA, that puts even MORE money on the table for current taxation.
That is only slightly less onerous than government talking about taxing my 401K.
>> “This is why I have advised conservatives not to run against “Obama,” but to direct their attacks against “Democrat policies,” linking them directly to socialism.” <<
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Excellent strategy. Politics of personality are fickle at best. Issues, issues, issues.
>> “HOWEVER, because NYC/NY has almost 9% in sales tax, adding another 9% in sales tax almost wipes out whatever gain I have until I get past / make more than my basic costs of living.” <<
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Very predictable. - This was the reason for the massive death of small businesses in Europe. When they ran the numbers, they were working for nothing, and went on the dole.
Forget Congress. Cain’s “plan” is to have the current deficit reduction “supercommittee” to “pass the Phase 1 Enhanced Plan along with their spending cut package”
One can hope he understands that the “supercommittee” doesn’t “pass” anything, it just makes a recommendation.
But who knows, because he already seems to be under the misguided notion that they are going to pass a spending cut package, AND that while doing that legislatively obligated duty, they would be happy to throw in some extraneous new tax proposal that nobody has vetted, and that hasn’t been through the legislative process.
Which means maybe he doesn’t know that whatever the supercommittee puts out, congress has to, by law, simply vote yes or no, without amendments.
Or since Cain is used to having dictatorial powers, maybe he thinks it would be good to make a fundamental change to our tax code without ANY oversite, congressional committee work or hearings, or debate on the details in congress.
Because that is what he has proposed — that a supercommittee take on a non-legislatively-authorized task that does NOTHING to meet their goal (deficit reduction: Cain’s plan is revenue neutral under scoring), that would then obligate congress to pass his 9-9-9 plan without a single amendment or a minute of debate on the merits.
Of course, that would make his job easier. And it’s what a good corporate executive would do — just tell his subordinates what to do, and expect it to happen. But that’s not what we do in a representative democracy. We don’t have a king.
Remember how we mocked Obama when he said the supercommittee should be tasked by congress with finding another $500 billion to pay for his jobs bill? Well at least Obama saw the need for congress to actually AUTHORIZE the supercommittee to take on additional tasks.
Really. Since most people have probably never played Sim City, I guess he is right. So how does it work in the game?
>> “He misses the point, either deliberately because he can’t answer it, or because he doesn’t understand the point, which I doubt.
“The problem is that people who have SAVED money did so under the old income/payroll tax rates. When you spend money you previously saved, you will now get hit with a new 9% tax that you didn’t before, but you don’t get any of the “savings” from the 9% income tax. You DO get savings from the drop in corporate tax rates, but it’s not enough to offset the 9% sales tax.” <<
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Excellent analysis.
Cain needs to lose this albatross quickly, or it will kill his candidacy. None of his answers will fool anyone that really understands the accounting.
THe money will go somewhere. IF the company doesn’t increase their pay to the employee, the company will have the money to re-invest and grow. Or they will pay it out as dividends to their shareholders.
Perry has already governed with sound conservative principles for a decade as Governor. That’s not just My opinion, Sarah Palin said so as well.
What has Cain done to implement his conservative principles? The problem with picking a non-politician is we have no idea how they will actually govern. We’ve seen solid conservative talkers turn out to support rather non-conservative things.
For example, have you noticed people souring on Allen West? He was the conservative, tea-party darling, but then he voted for the supercommittee “deficit reduction” plan.
Resellers have resale licenses.
That is what the big card at the register is for at Costco.
His plan was to get the 12-member “supercommittee” to pass it for him, while they were on a break from finding their 1.5 trillion in spending cuts and tax increases.
You joined FR in early October and have a lot of replies against Cain?
Are you getting paid for each anti Cain reply you post?
http://www.freerepublic.com/tag/by:rconser/index?tab=comments;brevity=full;options=no-change
One more question as a “true conservative” have you donated to Free Republic or are you like the illegals slurping up the what you haven’t paid for?
CAIN IS ABLE
I agree. I see this country is near civil war within the year. This is do or die for the world wide Communist Party who is behind all of these riots. The kids in NYC are morons being led by professional radicals , they don’t even know that much .
I see serious problems ahead and soon.
I agree. I see this country will be near civil war within the year. This is do or die for the world wide Communist Party who is behind all of these riots. The kids in NYC are morons being led by professional radicals , they don’t even know that much .
I see serious problems ahead and soon.
I agree. I see this country will be near civil war within the year. This is do or die for the world wide Communist Party who is behind all of these riots. The kids in NYC are morons being led by professional radicals , they don’t even know that much .
I see serious problems ahead and soon.
Then let’s put it back. Obama did a lot of bad things, and we should reverse them, not double-down on the “don’t waste a crisis” mentality and propose a whole new way to disrupt the economy.
Cain is essentially promising everybody lower taxes, while proposing a plan that is “revenue neutral”, meaning it doesn’t cut taxes. Obviously everybody can’t get a tax cut. But that’s what everybody keeps saying, that THEY get a tax cut. When they figure out they don’t people won’t like the plan as much.
YIKES , sorry for triple post..ISP problems , damn Comcast.
I want my daughter that recently graduated from college to be able to find a job. I've never seen anything like this in my lifetime. The economy is not going to turn around if Obama wins reelection next year.
How nice. It doesn't matter if your proposal works, if you can't pass it.
I don't see an answer to the question: Is Social Security taxed?, either.
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