Herman Cains plan? 9-9-9 For those that hate it

[thereisnospoon]

One thing that I don't think has been mentioned in this thread is if the 9% (income tax) includes Social Security and Medicare taxes. If it does then the 9% would not be much if any of an increase at all for even the lowest wage earners.

That does not, however, change the fact that the sales tax portion would, in fact, hit the lowest wage earners hardest.

Immie

I disagree. Sales taxes are paid only when someone buys something. Because lower income people have less to spend, obviously the less of the sales tax they will pay.
On the other hand, the lower 48% of of wage earners will not have a stake in the nation. Currently, these people bear no federal tax liability.

While I agree with you about sales taxes being more easy to manipulate for the poor, I do think that sales tax hits them harder than the rich.

If we were talking about only a sales tax and not a sales tax in addition to the income tax, I would be more inclined to support the sales tax over the income tax. On the other hand, this plan does nothing to lower income/FICA taxes for the poor AND it adds the additional burden of a federal sales tax.

The 9-9-9 plan would be heavy handed on the poor. That is not to say that I don't think that the poor should be paying taxes too, but I think this plan is doomed to failure partly because it obviously lowers the tax burden of the rich and it increases the burden on the poor.

Getting that passed would require one hell of a sales job.

Immie

Cain's plan virtually eliminates the US Tax Code. Along with it ,the IRS.
The idea of placing a new tax on top of all other existing taxes is not a smart idea for conservative candidates.
I for one would like nothing better than to see the IRS and it's hundreds of thousands of otherwise untouchable federal workers take their expertise into the private sector.

 

[BenNatuf]

I disagree. Sales taxes are paid only when someone buys something. Because lower income people have less to spend, obviously the less of the sales tax they will pay.
On the other hand, the lower 48% of of wage earners will not have a stake in the nation. Currently, these people bear no federal tax liability.

While I agree with you about sales taxes being more easy to manipulate for the poor, I do think that sales tax hits them harder than the rich.

If we were talking about only a sales tax and not a sales tax in addition to the income tax, I would be more inclined to support the sales tax over the income tax. On the other hand, this plan does nothing to lower income/FICA taxes for the poor AND it adds the additional burden of a federal sales tax.

The 9-9-9 plan would be heavy handed on the poor. That is not to say that I don't think that the poor should be paying taxes too, but I think this plan is doomed to failure partly because it obviously lowers the tax burden of the rich and it increases the burden on the poor.

Getting that passed would require one hell of a sales job.

Immie

Cain's plan virtually eliminates the US Tax Code. Along with it ,the IRS.
The idea of placing a new tax on top of all other existing taxes is not a smart idea for conservative candidates.
I for one would like nothing better than to see the IRS and it's hundreds of thousands of otherwise untouchable federal workers take their expertise into the private sector.

Cain's plan does nothing to the IRS, thier will still be an IRS, their will still be audits, there will still be incometaxes.