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Buffet would pay even less under Cain's 9-9-9 plan

auditor0007

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Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis


Warren Buffett might want to pay more taxes, but if Republican presidential candidate Herman Cain gets elected, Buffett might not pay any taxes at all.

If implemented, Cain's "999" tax plan would eliminate taxes on capital gains, significantly reducing Buffett's tax rate because his ordinary income, outside of capital gains, comes to about $4.9 million. Cain's plan would cap corporate, income and sales tax at 9 percent. According to an analysis prepared for Yahoo's Lookout by the American Institute of Certified Public accountants, the 999 plan would leave Buffett paying around $440,000 in income tax, or 1.1 percent of his approximate $40 million in currently taxable income.

Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis

Yep, Herman Cain is your man if you make a lot of money. If you are poor or a middle income earner, plan on paying more taxes while the super wealthy pay next to nothing under Cain's plan. Seriously, would Cain win any electoral votes if he were the nominee? His 9-9-9 plan sounds wonderful until you actually look at it. What astounds me is that many here have looked at it and think it's a great idea. It's laughable.
 

martybegan

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Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis


Warren Buffett might want to pay more taxes, but if Republican presidential candidate Herman Cain gets elected, Buffett might not pay any taxes at all.

If implemented, Cain's "999" tax plan would eliminate taxes on capital gains, significantly reducing Buffett's tax rate because his ordinary income, outside of capital gains, comes to about $4.9 million. Cain's plan would cap corporate, income and sales tax at 9 percent. According to an analysis prepared for Yahoo's Lookout by the American Institute of Certified Public accountants, the 999 plan would leave Buffett paying around $440,000 in income tax, or 1.1 percent of his approximate $40 million in currently taxable income.

Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis

Yep, Herman Cain is your man if you make a lot of money. If you are poor or a middle income earner, plan on paying more taxes while the super wealthy pay next to nothing under Cain's plan. Seriously, would Cain win any electoral votes if he were the nominee? His 9-9-9 plan sounds wonderful until you actually look at it. What astounds me is that many here have looked at it and think it's a great idea. It's laughable.

The government would get its 9% on the rest of it when it taxed the corporate profits prior to distribution. So if he gets $50M in dividends they already got thier 9% before it got split up.

You are also forgetting the 9% he would pay on anything he bought, which would probably be substantial.
 
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auditor0007

auditor0007

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Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis


Warren Buffett might want to pay more taxes, but if Republican presidential candidate Herman Cain gets elected, Buffett might not pay any taxes at all.

If implemented, Cain's "999" tax plan would eliminate taxes on capital gains, significantly reducing Buffett's tax rate because his ordinary income, outside of capital gains, comes to about $4.9 million. Cain's plan would cap corporate, income and sales tax at 9 percent. According to an analysis prepared for Yahoo's Lookout by the American Institute of Certified Public accountants, the 999 plan would leave Buffett paying around $440,000 in income tax, or 1.1 percent of his approximate $40 million in currently taxable income.

Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis

Yep, Herman Cain is your man if you make a lot of money. If you are poor or a middle income earner, plan on paying more taxes while the super wealthy pay next to nothing under Cain's plan. Seriously, would Cain win any electoral votes if he were the nominee? His 9-9-9 plan sounds wonderful until you actually look at it. What astounds me is that many here have looked at it and think it's a great idea. It's laughable.

The government would get its 9% on the rest of it when it taxed the corporate profits prior to distribution. So if he gets $50M in dividends they already got thier 9% before it got split up.

You are also forgetting the 9% he would pay on anything he bought, which would probably be substantial.

Sorry, but the wealthy spend the smallest percentage of their income on consumer goods, so the 9% sales tax would be minimal for anyone who earns that much money. If you look at the tax structures of almost every state, you will find that the less you make, the more you pay in state taxes as a percentage of income. This is due to sales taxes being such a large portion of state tax revenues. In Texas, for example, the lowest income earners pay approximately four times the taxes than the wealthiest income earners do. State taxes are extremely regressive, and Herman Cain's plan would make federal taxes just as regressive, leaving the wealthy paying the least and the lowest income earners paying the most as a percentage of income.
 

martybegan

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Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis




Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis

Yep, Herman Cain is your man if you make a lot of money. If you are poor or a middle income earner, plan on paying more taxes while the super wealthy pay next to nothing under Cain's plan. Seriously, would Cain win any electoral votes if he were the nominee? His 9-9-9 plan sounds wonderful until you actually look at it. What astounds me is that many here have looked at it and think it's a great idea. It's laughable.

The government would get its 9% on the rest of it when it taxed the corporate profits prior to distribution. So if he gets $50M in dividends they already got thier 9% before it got split up.

You are also forgetting the 9% he would pay on anything he bought, which would probably be substantial.

Sorry, but the wealthy spend the smallest percentage of their income on consumer goods, so the 9% sales tax would be minimal for anyone who earns that much money. If you look at the tax structures of almost every state, you will find that the less you make, the more you pay in state taxes as a percentage of income. This is due to sales taxes being such a large portion of state tax revenues. In Texas, for example, the lowest income earners pay approximately four times the taxes than the wealthiest income earners do. State taxes are extremely regressive, and Herman Cain's plan would make federal taxes just as regressive, leaving the wealthy paying the least and the lowest income earners paying the most as a percentage of income.

The tax would be on services as well, so when buffet caters out a giant fundraiser he would then pay 9% on that as well. when he leased a corporate jet, 9%. Jet fuel? 9%.
New summer villa? 9%. New car? 9%.
 

Lonestar_logic

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Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis


Warren Buffett might want to pay more taxes, but if Republican presidential candidate Herman Cain gets elected, Buffett might not pay any taxes at all.

If implemented, Cain's "999" tax plan would eliminate taxes on capital gains, significantly reducing Buffett's tax rate because his ordinary income, outside of capital gains, comes to about $4.9 million. Cain's plan would cap corporate, income and sales tax at 9 percent. According to an analysis prepared for Yahoo's Lookout by the American Institute of Certified Public accountants, the 999 plan would leave Buffett paying around $440,000 in income tax, or 1.1 percent of his approximate $40 million in currently taxable income.

Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis

Yep, Herman Cain is your man if you make a lot of money. If you are poor or a middle income earner, plan on paying more taxes while the super wealthy pay next to nothing under Cain's plan. Seriously, would Cain win any electoral votes if he were the nominee? His 9-9-9 plan sounds wonderful until you actually look at it. What astounds me is that many here have looked at it and think it's a great idea. It's laughable.

Huffington Post?!?!? Seriously?!?!
 

Article 15

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Number 9, number 9, number 9 .....
 

Article 15

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Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis


Warren Buffett might want to pay more taxes, but if Republican presidential candidate Herman Cain gets elected, Buffett might not pay any taxes at all.

If implemented, Cain's "999" tax plan would eliminate taxes on capital gains, significantly reducing Buffett's tax rate because his ordinary income, outside of capital gains, comes to about $4.9 million. Cain's plan would cap corporate, income and sales tax at 9 percent. According to an analysis prepared for Yahoo's Lookout by the American Institute of Certified Public accountants, the 999 plan would leave Buffett paying around $440,000 in income tax, or 1.1 percent of his approximate $40 million in currently taxable income.

Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis

Yep, Herman Cain is your man if you make a lot of money. If you are poor or a middle income earner, plan on paying more taxes while the super wealthy pay next to nothing under Cain's plan. Seriously, would Cain win any electoral votes if he were the nominee? His 9-9-9 plan sounds wonderful until you actually look at it. What astounds me is that many here have looked at it and think it's a great idea. It's laughable.

Huffington Post?!?!? Seriously?!?!

For realzies.
 

Lonestar_logic

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Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis




Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis

Yep, Herman Cain is your man if you make a lot of money. If you are poor or a middle income earner, plan on paying more taxes while the super wealthy pay next to nothing under Cain's plan. Seriously, would Cain win any electoral votes if he were the nominee? His 9-9-9 plan sounds wonderful until you actually look at it. What astounds me is that many here have looked at it and think it's a great idea. It's laughable.

Huffington Post?!?!? Seriously?!?!

For realzies.

Then of course the liberals will believe it.
 

Article 15

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Huffington Post?!?!? Seriously?!?!

For realzies.

Then of course the liberals will believe it.

Nah, they don't believe everything HuffPo puts out.

For example, if the HuffPo were to post a piece saying that USMB's Lonestar_Logic is totally heterosexual and eats Marines for breakfast liberals would know the HuffPo is full of it or at the least suspect the author was going for an Onion style piece.
 

Lonestar_logic

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For realzies.

Then of course the liberals will believe it.

Nah, they don't believe everything HuffPo puts out.

For example, if the HuffPo were to post a piece saying that USMB's Lonestar_Logic is totally heterosexual and eats Marines for breakfast liberals would know the HuffPo is full of it or at the least suspect the author was going for an Onion style piece.

Another liberal asswipe. Why am I not surprised?
 

Foxfyre

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Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis




Warren Buffett Would Most Likely Pay No Income Tax Under Herman Cain's '999' Tax Plan: Analysis

Yep, Herman Cain is your man if you make a lot of money. If you are poor or a middle income earner, plan on paying more taxes while the super wealthy pay next to nothing under Cain's plan. Seriously, would Cain win any electoral votes if he were the nominee? His 9-9-9 plan sounds wonderful until you actually look at it. What astounds me is that many here have looked at it and think it's a great idea. It's laughable.

The government would get its 9% on the rest of it when it taxed the corporate profits prior to distribution. So if he gets $50M in dividends they already got thier 9% before it got split up.

You are also forgetting the 9% he would pay on anything he bought, which would probably be substantial.

Sorry, but the wealthy spend the smallest percentage of their income on consumer goods, so the 9% sales tax would be minimal for anyone who earns that much money. If you look at the tax structures of almost every state, you will find that the less you make, the more you pay in state taxes as a percentage of income. This is due to sales taxes being such a large portion of state tax revenues. In Texas, for example, the lowest income earners pay approximately four times the taxes than the wealthiest income earners do. State taxes are extremely regressive, and Herman Cain's plan would make federal taxes just as regressive, leaving the wealthy paying the least and the lowest income earners paying the most as a percentage of income.

If I make $50k and spend 30% of my income on consumer goods, I will spend $15k on consumer goods.

I will also pay $4,900 in income taxes on Cain's 9-9-9 plan.

The guy making $1 million who spends 5% of his income on consumer goods will spend $50k on consumer goods.

He will pay $90,000 in income taxes on Cain's 9-9-9 plan and, because he probably is operating a business, substantial additional taxes on the business.

We should be looking to generate treasury receipts while allowing the taxpayer to keep as much of his earned income as possible.

The 'class envy' group however resents that the millionaire, who earned his million, will get to keep more than the guy earning $50k. They don't care that it is likely the millionaire who is making it possible for that other guy and a whole lot more guys and gals to earn their $50k. They resent anybody who manages to be super successful and refuse to consider that the guy making $50k now may be one of those super successful on down the line.

I liked Warren Buffet's line in the newspaper today though: "I could end the deficit in a minute. You just pass a law that says that anytime there is a deficit of more than 3% of GDP all sitting members of congress are ineligible for reelection."
 

NYcarbineer

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Cain claims his plan is revenue neutral, and it's indisputable that the wealthy pay less under his plan,

so the question is,

who pays more under his plan?

Someone HAS to, if the plan is revenue neutral and the wealthy pay less. Somewhere you have to make up the difference.

Where?
 

Article 15

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Then of course the liberals will believe it.

Nah, they don't believe everything HuffPo puts out.

For example, if the HuffPo were to post a piece saying that USMB's Lonestar_Logic is totally heterosexual and eats Marines for breakfast liberals would know the HuffPo is full of it or at the least suspect the author was going for an Onion style piece.

Another liberal asswipe. Why am I not surprised?

Lonestar_logic: Confound it!
 

ABikerSailor

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Yeah........I'd like to see how New Hampshire (a state currently WITHOUT a sales tax) is gonna like this 9 percent.

I'd also like to hear how the others (like New York who already has a sales tax) are gonna enjoy having it jacked up another 9 percent for living.

And, what's this bullshit about no sales tax on used goods? Does this mean that if the middle class wants to survive, they're gonna have to start shopping at Goodwill?
 

martybegan

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Cain claims his plan is revenue neutral, and it's indisputable that the wealthy pay less under his plan,

so the question is,

who pays more under his plan?

Someone HAS to, if the plan is revenue neutral and the wealthy pay less. Somewhere you have to make up the difference.

Where?

How is it indisputable when there is no hard data on how much the national sales tax would collect? Also remember that all the deductions would go away, so that 30M that buffet gave to charity would count towards his income, if it came from pay income.
 

Foxfyre

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I am not yet sold on the 9% sales tax part of Cain's 9-9-9 plan and keep hoping somebody can reassure me that it would not be a VAT which I would never support under any circumstances.

I AM however of the opinion, however, that if we are going to tax income, that ALL income earners from the least to the most, individuals and businesses, should be paying the same percentage of tax. Thus at 10%, he millionare would pay $100,000 per year and the $10,000 a year guy would pay $1,000. But each would have a stake in the system and share in the consequences of the tax code. It would eliminate the incentive to vote for the guy who would keep the gravy train rolling rather than than the guy who has the best interests of the country at heart.

Right now, 50% of wage earners as well as all those who don't work have strong incentive to keep the gravy train rolling. That is not healthy for any of us.
 

martybegan

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Yeah........I'd like to see how New Hampshire (a state currently WITHOUT a sales tax) is gonna like this 9 percent.

I'd also like to hear how the others (like New York who already has a sales tax) are gonna enjoy having it jacked up another 9 percent for living.

And, what's this bullshit about no sales tax on used goods? Does this mean that if the middle class wants to survive, they're gonna have to start shopping at Goodwill?

its because the tax has already been paid on the item once.
 

Foxfyre

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Yeah........I'd like to see how New Hampshire (a state currently WITHOUT a sales tax) is gonna like this 9 percent.

I'd also like to hear how the others (like New York who already has a sales tax) are gonna enjoy having it jacked up another 9 percent for living.

And, what's this bullshit about no sales tax on used goods? Does this mean that if the middle class wants to survive, they're gonna have to start shopping at Goodwill?

its because the tax has already been paid on the item once.

I would not mind a 9% sales tax at the market place so long as other taxes we pay are eliminated. Even New Hampshire people are capable of understanding that if their income tax is a fraction of what it was, that 9% sales tax isn't much of a burden.

But again, the way I understand it, it wouldn't be a sales tax on the market end but rather a VAT on everything along the way, and I can't see that as a good thing. At least I sure haven't been persuaded yet.

I would rather see a flat 10 or 12% tax on all income, individual or business, and shelve the sales tax. I know Cain has explained the federal sales tax as a bone thrown to the 'fair tax' people who want to ditch all taxes in favor of a national sales tax, but I have consistently opposed that, so I can't see how Cain's tax would be any different.
 

Foxfyre

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By the way, Warren Buffet gets most of his personal income from stocks, bonds, investment that are currently taxed at the capital gains rate which most likely is lower than the taxes his secretary pays. If he thinks that isn't fair, he could always instead be paid a salary and then he would be paying his 'fair share' as he seems to see it.

The hypocrisy about Buffett is wanting others to pay more taxes while he is fighting tooth and nail to beat the taxes assessed on his own business. :)
 

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