[Drago]

"Your money that you draw out of your 401K will be taxed, wouldn't you like it at the lower 9% rate? It wasn't taxed when you put it in the 401k, because they are going to tax it when you withdraw it. 401k's are not tax-free, they are only tax deferred. All of the retirement accounts will have taxes collected upon withdrawal."

Under current federal income tax rules we would be paying about 5.5% on the funds withdrawn from our 401k's (we aren't "rich"), how is 9% PLUS a new federal 9% sales tax better?!? 

[Polybius]

"Your money that you draw out of your 401K will be taxed, wouldn't you like it at the lower 9% rate? It wasn't taxed when you put it in the 401k, because they are going to tax it when you withdraw it. 401k's are not tax-free, they are only tax deferred. All of the retirement accounts will have taxes collected upon withdrawal.".... republicangel

Under current federal income tax rules we would be paying about 5.5% on the funds withdrawn from our 401k's (we aren't "rich"), how is 9% PLUS a new federal 9% sales tax better?!? ...... Drago

And what about current savers, republicangel?

I just retired, on my own savings, after three decades of workaholic medical practice.

My savings have ALREADY been Income Taxed at the top rate of 35%. Once I spend my savings, under the 9-9-9 Plan, that money will be taxed AGAIN by a 9% Sale Tax.

How is that double-taxation of current savings "better"?

Cain has not though this thing through. In fact, Cain did not think of it himself at all.

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From fan to The Man: How Cleveland's Rich Lowrie claimed a place in Herman Cain's inner circle

That's how Lowrie found himself this summer on a New Hampshire-bound flight with Cain, sketching the tax-reform plan that in recent weeks has become a household name and helped Cain surge to the head of the Republican field.

"I had one question for him," Lowrie said of the chat. "How bold do you want to be?"

Cain, "with his signature smile and booming voice," leaned in and replied: "Bold."

And so, "9-9-9" was born -- a proposal to replace the federal tax code with a flat 9 percent tax on personal income and businesses and a 9 percent national sales tax.

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