Cain tax plan shifts tax burden from the rich to the poor

Well, I was kinda hoping that someone who supports Cain's 9-9-9 and who is also Middle Class explain why they have no problem paying at a higher overall tax rate when including the 9% Sales Tax.
I'll wait.

Not saying your assumptions are true but.....

Cains tax play offers one huge advantage that the current tax code can not. Anyone business or individual can form a budget around and make future plans based on a known quantity. We don't have to search for loopholes or exemptions to find savings. You could easily know exactly what the outcome of any decision you would make and how it would impact your taxes.
For that kind of stability I would pay slightly more and could easily make future decisions knowing what the consequences would be.
 
We pay $ 7.88 for 10 lb of sugar at Safeway for C&H sugar, a corporation.
Anyone who is middle class to poor who can afford this price will be able to under the 9% sales tax.

7.88 price now with 35% corp tax
-2.04 product cost less at 9% corp tax.
5.84
Add 9% sales tax = .52 plus our state tax at 7% = .40 That is .92 cents
Add the 5.84 and the .92 = 6.76
If you can afford the sugar at 7.88, you can afford it at 6.76
Our Federal tax is withheld each month, we would not get it back after deductions,but we would be able to adjust without the tax refund. The money isn't seen all year anyway.
 
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Typical Republican...

NEW YORK (CNNMoney) -- Herman Cain has a plan to radically reform the nation's tax system and make things a lot simpler for taxpayers.

Problem is, it could end up adding to the deficit and shifting the tax burden away from the wealthy and onto the poor, according to some leading tax experts.

Cain, who's recently moved up in the polls to become one of the leading Republican presidential candidates, is basing much of his campaign on what he calls the 9-9-9 plan, which would get rid of almost all current taxes and replace them with a 9% flat tax on income, a 9% flat corporate tax and a 9% national sales tax.

Herman Cain's 9-9-9 tax plan: Break for the rich? - Oct. 11, 2011

Why would it necessarily do that...? If corporate taxes are lowered to be really competitive....cost of goods can be more competitive and thus lowered.....and more new jobs and better paying jobs can be created....which means people at all levels will have more OPPORTUNITY and thus MORE MONEY to spend....nobody needs to remain poor if they don't want to....

But if it came to that....such as for those on fixed incomes like social security.... there could possibly be categories of exempt income or goods to help the poor....such as food....which could be tax free or taxed at a lower rate....like many states do....everybody gets the benefit equally....

Of course socialistic "tax credits" will go by the wayside.....gee too bad....
Indeed. And note 9 9 9 is a bridge to the FAIRTAX.

I guess Chris is for keeping the punative system we have now that is a tool of the Government to alter economic behaviour at the whim of the Government.

Too many want to continue to tinker with a Century old system that is doing nothing but put this economy in a body cast.

Why continue to put bandaids on that patient in a cast? Too many can't find it within themselves to think outside the box.

Cain has done that with his plan.
 
Well, I was kinda hoping that someone who supports Cain's 9-9-9 and who is also Middle Class explain why they have no problem paying at a higher overall tax rate when including the 9% Sales Tax.
I'll wait.

Not saying your assumptions are true but.....

Cains tax play offers one huge advantage that the current tax code can not. Anyone business or individual can form a budget around and make future plans based on a known quantity. We don't have to search for loopholes or exemptions to find savings. You could easily know exactly what the outcome of any decision you would make and how it would impact your taxes.
For that kind of stability I would pay slightly more and could easily make future decisions knowing what the consequences would be.

See Post # 105 and tell me where I'm wrong.
 
We pay $ 7.88 for 10 lb of sugar at Safeway for C&H sugar, a corporation.
Anyone who is middle class to poor who can afford this price will be able to under the 9% sales tax.

7.88 price now with 35% corp tax
-2.04 product cost less at 9% corp tax.
5.84
Add 9% sales tax = .52 plus our state tax at 7% = .40 That is .92 cents
Add the 5.84 and the .92 = 6.76
If you can afford the sugar at 7.88, you can afford it at 6.76
Our Federal tax is withheld each month, we would not get it back after deductions,but we would be able to adjust without the tax refund. The money isn't seen all year anyway.

So you think that if corporate taxes are lowered the corporations are going to pass all that money along to YOU???

:lol::lol::lol::lol: that would be the dumbest thing I've seen all day.
 
If a poor person working at low wages gets food stamps, Medicaid, maybe some heat/energy assistance, etc.,

what's the point of then taxing that person?

You're then effectively taking away a portion of his assistance.

Why don't you just take away his food stamps, or his Medicaid?

I guess any response to this won't be forthcoming anytime soon.

Probably because it is a nonsensical statement and not remotely true. A person earning some type of income yet deemed low enough to qualify for assistance in the form of food stamps or medicaid. Is obviously receving far more benefit in have those things paid for by government than if he simply kept the tax money and tried to pay for them him/her self. The mere 9% being taken out of there check is relatively nothing when your checks are that small. Certainly not enough to cover an energy bill or health care.

9% out of the wages of someone working for 10 dollars an hour is 1800 dollars a year. If that same person was paying NO federal income tax under the current system,

that's a bit of a jump.
 
Cain tax plan shifts tax burden from the rich to the poor

Cain don't have a tax plan. He has a marketing plan.
 
I guess any response to this won't be forthcoming anytime soon.

Probably because it is a nonsensical statement and not remotely true. A person earning some type of income yet deemed low enough to qualify for assistance in the form of food stamps or medicaid. Is obviously receving far more benefit in have those things paid for by government than if he simply kept the tax money and tried to pay for them him/her self. The mere 9% being taken out of there check is relatively nothing when your checks are that small. Certainly not enough to cover an energy bill or health care.

9% out of the wages of someone working for 10 dollars an hour is 1800 dollars a year. If that same person was paying NO federal income tax under the current system,

that's a bit of a jump.
then you add 9% in a consumption tax when he consumes with every dollar he makes, you are almost adding another $1800....., while corporations go from 35% down to 9%....i could see giving them a huge tax cut by dropping it to 20% but 9%?

cain's plan is dead on arrival.

what worries me MOST is i don't want to see ANOTHER tax that the gvt can use to tax us...both income AND a new consumption tax! :eek:

jeez louise!
 
taxing food is unethical....and a very regressive tax!!!

i am so happy i have never lived in a State that did such!
 
taxing food is unethical....and a very regressive tax!!!

i am so happy i have never lived in a State that did such!

I got news for you Care4all;
you are paying taxes on food, it's called corporate tax and we the consumers pay that tax.
 
I asked this in another thread but it's more appropriate here. Won't most people's taxes go up under this plan? And if so, why would the majority of people support it?


I would say so, the tax burden would be reduced for the upper incomes but increased on the middle and lower incomes, or so I believe. I do think we should broaden the tax base a little bit, having nearly half of the citizenry paying no income tax is not a good idea. I couldn't support the 9-9-9 plan the way it is now, but I do like the idea of lowering corp taxes and having a consumption tax in concert with the income tax. I would have a lower consumption tax, closer to say 5%, and a higher and somewhat progressive income tax ranging up to 15 or 20%. I'd have a corp tax somewhere around 10-12% and I'd leave capital gains at around 15%. But I'd allow those paying less than 15% income tax rate to include their capital gains as ordinary income.
 
taxing food is unethical....and a very regressive tax!!!

i am so happy i have never lived in a State that did such!

I got news for you Care4all;
you are paying taxes on food, it's called corporate tax and we the consumers pay that tax.

But you leave out the fact that corporate taxes pay bills that somebody else would have to pay if there was no corporate tax.

You want your taxes raised so the corporations can operate tax-free?
 
taxing food is unethical....and a very regressive tax!!!

i am so happy i have never lived in a State that did such!

I got news for you Care4all;
you are paying taxes on food, it's called corporate tax and we the consumers pay that tax.

But you leave out the fact that corporate taxes pay bills that somebody else would have to pay if there was no corporate tax.

You want your taxes raised so the corporations can operate tax-free?


Who ever said tax free?
9% corporation tax is not zero.
 

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