Tax Policy Center delivers haymaker to 9 - 9 - 9

[NYcarbineer]

Whoa. See what some of us were trying to tell you?


Study: Cain Tax Plan Raises Taxes on 84 Percent


"Herman Cain's 9-9-9 tax plan would raise taxes on 84 percent of U.S. households, according to an independent analysis released Tuesday, contradicting claims by the Republican presidential candidate that most Americans would see a tax cut.


The Tax Policy Center, a Washington think tank, says low- and middle-income families would be hit hardest, with households making between $10,000 and $20,000 seeing their taxes increase by nearly 950 percent....

Households with the highest incomes, however, would get big tax cuts. Those making more than $1 million a year would see their taxes cut nearly in half, on average, according to the analysis...."

Read more: Study: Cain Tax Plan Raises Taxes On 84 Percent | Fox News

 

[Kiki Cannoli]

The article does not address local, city, county, state income nor sales taxes. Where do these apply? Or did I miss this detail? Thanks.

 

[8537]

The article does not address local, city, county, state income nor sales taxes. Where do these apply? Or did I miss this detail? Thanks.

There's no reason to believe those would change. States and municipalities would still need to fund services.

 

[Kiki Cannoli]

The article does not address local, city, county, state income nor sales taxes. Where do these apply? Or did I miss this detail? Thanks.

There's no reason to believe those would change. States and municipalities would still need to fund services.

Precisely, thus I am looking for confirmation that the new 999 increases would be in addition to 'local' taxes being paid today.

 

[DiamondDave]

When one pays no federal income tax (well.. more than one... more like ~48% of the citizenry)... of course having a standard tax that will apply to everyone will mean there is an increase for many...

They should have been paying federal income tax like others in the first place... you know... that little thingy called equal treatment by law under government

 

[Jarhead]

The article does not address local, city, county, state income nor sales taxes. Where do these apply? Or did I miss this detail? Thanks.

There's no reason to believe those would change. States and municipalities would still need to fund services.

Precisely, thus I am looking for confirmation that the new 999 increases would be in addition to 'local' taxes being paid today.

they would have to be in addition.
The federal government can not step in and force a state or municipality to refrain from collecting taxes.

 

[Jarhead]

When one pays no federal income tax (well.. more than one... more like ~48% of the citizenry)... of course having a standard tax that will apply to everyone will mean there is an increase for many...

They should have been paying federal income tax like others in the first place... you know... that little thingy called equal treatment by law under government

Exactly why I laugh at those that act like "look what I uncovered" ...

It is not rocket science to know that a flat tax would mean the wealthier will pay less than they do now and the less wealthy will pay more.

What I am curious about is the capital gains tax...are all cap gains going to be deemed as income and taxed at 9%?

If yes, then I just cant see how this 9-9-9 plan will be deficit neutral.

 

[Kiki Cannoli]

When one pays no federal income tax (well.. more than one... more like ~48% of the citizenry)... of course having a standard tax that will apply to everyone will mean there is an increase for many...

They should have been paying federal income tax like others in the first place... you know... that little thingy called equal treatment by law under government

If the earned income and child tax credits weren't increased, than more Americans would be paying taxes. I don't fault families for taking advantage of legal tax maneuvers. I don't agree with the deductions, but they exist and that I accept.

To your point, yes an increase will occur as a result of change. However, my tax burden will also increase and that is without losing those credits because I do not qualify for them today.

 

[Oddball]

The article does not address local, city, county, state income nor sales taxes. Where do these apply? Or did I miss this detail? Thanks.

No, you didn't miss it....Cain conveniently omits it.

You'll still be paying state and local taxes on top of the federal 27% rate.

 

[8537]

When one pays no federal income tax (well.. more than one... more like ~48% of the citizenry)... of course having a standard tax that will apply to everyone will mean there is an increase for many...

They should have been paying federal income tax like others in the first place... you know... that little thingy called equal treatment by law under government

Exactly why I laugh at those that act like "look what I uncovered" ...

It is not rocket science to know that a flat tax would mean the wealthier will pay less than they do now and the less wealthy will pay more.

What I am curious about is the capital gains tax...are all cap gains going to be deemed as income and taxed at 9%?

If yes, then I just cant see how this 9-9-9 plan will be deficit neutral.

His plan does not tax capital gains.

 

[Jarhead]

The article does not address local, city, county, state income nor sales taxes. Where do these apply? Or did I miss this detail? Thanks.

No, you didn't miss it....Cain conveniently omits it.

You'll still be paying state and local taxes on top of the federal 27% rate.

27% rate?
You are assuming all people will spend every penny they make and all people own a corporation...

And actually, if everyone spends every penny they make, it is really spending only 91% of their income so the tax on that would be 9% of 91% of income PLUS 9% of income

Unless I misunderstood what you are saying.

 

[Jarhead]

When one pays no federal income tax (well.. more than one... more like ~48% of the citizenry)... of course having a standard tax that will apply to everyone will mean there is an increase for many...

They should have been paying federal income tax like others in the first place... you know... that little thingy called equal treatment by law under government

Exactly why I laugh at those that act like "look what I uncovered" ...

It is not rocket science to know that a flat tax would mean the wealthier will pay less than they do now and the less wealthy will pay more.

What I am curious about is the capital gains tax...are all cap gains going to be deemed as income and taxed at 9%?

If yes, then I just cant see how this 9-9-9 plan will be deficit neutral.

His plan does not tax capital gains.

no tax at all or is it deemed as regular income and taxed at 9%?

 

[Jarhead]

The article does not address local, city, county, state income nor sales taxes. Where do these apply? Or did I miss this detail? Thanks.

No, you didn't miss it....Cain conveniently omits it.

You'll still be paying state and local taxes on top of the federal 27% rate.

why do you say conveniently omits it?

Since when did any federal tax discussion/proposal include local taxes?

He did not conveniently omit it.....he had no reason to add it in.

 

[Oddball]

The article does not address local, city, county, state income nor sales taxes. Where do these apply? Or did I miss this detail? Thanks.

No, you didn't miss it....Cain conveniently omits it.

You'll still be paying state and local taxes on top of the federal 27% rate.

27% rate?
You are assuming all people will spend every penny they make and all people own a corporation...

And actually, if everyone spends every penny they make, it is really spending only 91% of their income so the tax on that would be 9% of 91% of income PLUS 9% of income

Unless I misunderstood what you are saying.

Yes, 27% rate....Slightly lower if you have a savings plan.

Corporate taxes get passed along to consumers in terms of higher prices or workers in lower wages, so you'll be paying that 9% too.

 

[RDD_1210]

When one pays no federal income tax (well.. more than one... more like ~48% of the citizenry)... of course having a standard tax that will apply to everyone will mean there is an increase for many...

They should have been paying federal income tax like others in the first place... you know... that little thingy called equal treatment by law under government

So I assume you were in favor of letting the Bush tax cuts expire?

 

[Navy1960]

Cain's 9-9-9 plan while an attempt it is perhaps not the best way to approach it, in my humble opinion. It would seem to me the most glaring thing about it is the additional 9% Sales Tax on top whatever your state tax is. If anyone believes for a moment in the assumption that goods and services will be reduuced in cost and the additional 9% is basically an offset according to the theory, then they have not been watching lately. Companies these day's tend to keep "extra money" and not pass that along to the consumer. What is passed to the consumer is "cost". So while I admire Cain's attempt it is perhaps not the best way to approach it.

 

[Jarhead]

No, you didn't miss it....Cain conveniently omits it.

You'll still be paying state and local taxes on top of the federal 27% rate.

27% rate?
You are assuming all people will spend every penny they make and all people own a corporation...

And actually, if everyone spends every penny they make, it is really spending only 91% of their income so the tax on that would be 9% of 91% of income PLUS 9% of income

Unless I misunderstood what you are saying.

Yes, 27% rate....Slightly lower if you have a savings plan.

Corporate taxes get passed along to consumers in terms of higher prices or workers in lower wages, so you'll be paying that 9% too.

So just to be clear...

Taxes are deemed as operating costs and thus are passed along to the consumer in prices as it pertains to the GOP candidate Cain's 9-9-9 plan...

But when the GOP showed concern that an increase of taxes on the wealthier buisness owners will only add to the cost of goods to the consumer, such was nothing more than GOP rhetoric and blatantly false...

Am I correct?

 

[RDD_1210]

Exactly why I laugh at those that act like "look what I uncovered" ...

It is not rocket science to know that a flat tax would mean the wealthier will pay less than they do now and the less wealthy will pay more.

What I am curious about is the capital gains tax...are all cap gains going to be deemed as income and taxed at 9%?

If yes, then I just cant see how this 9-9-9 plan will be deficit neutral.

His plan does not tax capital gains.

no tax at all or is it deemed as regular income and taxed at 9%?

No tax at all on capital gains. It's on his website.

 

[Jarhead]

His plan does not tax capital gains.

no tax at all or is it deemed as regular income and taxed at 9%?

No tax at all on capital gains. It's on his website.

I can not see how that plan can do anything but the following:

Make the rich even richer without lifting a finger
Make the poor even poorer
Wind up increasing the deficit and thus the debt...even if spending is cut.

Whereas I admire the effort, this plan is DOA.

 

[RDD_1210]

no tax at all or is it deemed as regular income and taxed at 9%?

No tax at all on capital gains. It's on his website.

I can not see how that plan can do anything but the following:

Make the rich even richer without lifting a finger
Make the poor even poorer
Wind up increasing the deficit and thus the debt...even if spending is cut.

Whereas I admire the effort, this plan is DOA.

Agreed. This plan doesn't have a snowballs chance in hell....if he were to be elected.