What happens to corporate taxes under Cain's 9-9-9 plan?

healthmyths

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Almost EVERYONE is ignoring the simple fact that Cain's 9% corporate taxes will eliminate what corporations deduct and require 9% tax payment.
For the FACTS check this table from the IRS:
http://www.irs.gov/taxstats/article/0,,id=170544,00.html
In 2008 5,847,221 corporate tax returns showed:
Reported gross receipts: $28.568 trillion
Total deductions 27.686 trillion
Net Income .984 trillion
Income subject to tax .978 trillion

Total income tax after credits: 228.5 billion or 23% of income taxed!

But under Cain's 9% ...
Estimates are nearly $2 trillion sits in cash or offshore assets by corporations that paid the 23% taxes.
Assume $1 trillion is put back into the economy.
Assumed by hiring 8 million people at $40k and the remaining spent in the economy...
The multiplier affect of 1.18 would generate another $200 billion in tax revenue!

But detractors of 9-9-9 haven't considered that!
 
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DontBeStupid

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But under Cain's 9% ...
Estimates are nearly $2 trillion sits in cash or offshore assets by corporations that paid the 23% taxes.
Assume $1 trillion is put back into the economy.
Assumed by hiring 8 million people at $40k and the remaining spent in the economy...
The multiplier affect of 1.18 would generate another $200 billion in tax revenue!

But detractors of 9-9-9 haven't considered that!
Why do corporations magically spend $1T under Cain's plan?
 
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healthmyths

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DUH.. they don't have 35% tax rate so the bring back the $2 trillion offshore!
 

ScienceRocks

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I support lowering the corperate tax, but Cain goes far further than I'd even go. BUT If we don't get rid of the current income tax we're all going to be taxed more...We got to do both at the same time. Doubt we could ever get this through congress. This is pie in the sky for at least his first 2 years being that we can at most get a slight majority in the senate.
 
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healthmyths

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Who thought we'd get Obamacare, or Dodd/Frank?
Who thought we'd have an EPA run amok?
I think Cain is tapping into more of the silent majority which is getting really tired of taxes being spent on projects like these:

$2.6 million training Chinese prostitutes to drink more responsibly on the job
(NIH) spent nearly $442,340 to study male prostitutes in Vietnam & their social setting.
A university study of how much alcohol college freshmen women require before agreeing to sex!
$700,000 federal grant to examine "greenhouse gas emission from organic dairies, caused by cow burps.
The National Science Foundation spent $250k to Stanford to study how Americans use the Internet to find love.
(ATF) spent over $20,000 in taxpayer money "to unravel the anonymity of a 2,500-year-old mummy."
I mean the majority of tax payers have NO idea that wasteful projects such as these are part of the reason to adopt Cain's 9-9-9!
The above are JUST plain stupid and Cain has a lot of common sense which is obviously absent by the above projects!
 

pgm

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I think Cain is tapping into more of the silent majority which is getting really tired of taxes being spent on projects like these:

$2.6 million training Chinese prostitutes to drink more responsibly on the job
1) It was part of a block grant to NIH. NIH decided what projects were worth spending money on.
2) "[T]he researchers will use the grant to develop, implement and evaluate an alcohol use and HIV risk reduction intervention program among female sex workers in China. This is in line with previous studies showing that social norms and institutional policy in commercial sex venues greatly influence alcohol use and sexual behavior among the sex workers in those venues. Studies such as these are needed to translate and adapt interventions that have proven to be effective in the U.S. to other settings and to learn from other conditions and cultures to inform our understanding of the causes, consequences and differences in HIV-related risks, morbidity and mortality in diverse populations. Preventing HIV infection is NIH’s highest priority for HIV-related research. We need to explore a range of research avenues in vulnerable populations around the world to learn the best ways to control the transmission of HIV."

Do you want Congress to vote on everything on which the NIH decides to spend the money already appropriated to it?


$700,000 federal grant to examine "greenhouse gas emission from organic dairies, caused by cow burps.
More like a grant to study how to mitigate the release of toxic chemicals, such as nitrogen, in dairy farming to reduce greenhouse gas admissions. Besides, it's only $700,000. That's like one guided missile.

The above are JUST plain stupid and Cain has a lot of common sense which is obviously absent by the above projects!
Certainly some of them. Although, I'm definitely too lazy to go on a project-by-project basis. There's a ton of waste in the federal budget. But not all of Tom Coburn's examples are great ones because he has a tendency to take things out of context to be catchy (as in the cow burps one).
 
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healthmyths

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But the "mindset" of NIH,EPA,etc., is first to perpetuate their existence! And one of Cain's business principles is ZERO based budgeting, i.e. prove year to year why the budget should be versus spending what is left so you won't be cut!
As a result idiotic expenditures like paying for Vietnamese prostitutes wouldn't occur!

Yea it probably is equal to a guided missile and so?
You have a problem with spending on our defense?
Now here is a defense expenditures that are perfect examples of wasteful defense $$s!
- spent $998,798 shipping two 19-cent washers from South Carolina to Texas
- The Association Between Penis Size and Sexual Health Among Men Who Have Sex
with Men $9.4 million went to a ten-year study that included the penis-size research.

I mean there is NO excuse for expenditures like the above even DoD!
 

jillian

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But under Cain's 9% ...
Estimates are nearly $2 trillion sits in cash or offshore assets by corporations that paid the 23% taxes.
Assume $1 trillion is put back into the economy.
Assumed by hiring 8 million people at $40k and the remaining spent in the economy...
The multiplier affect of 1.18 would generate another $200 billion in tax revenue!

But detractors of 9-9-9 haven't considered that!
Why do corporations magically spend $1T under Cain's plan?
they don't. he's a shill.
 

editec

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A stupid plan that appeals to stupid people because it is simply enough that they think they get it..

What does eliminate TAX loopholes really mean?

I read you folks telling us about these "loopholes" all the time, please tell me about the biggest loophole you think this plan will plug.
 
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Mr.Nick

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9% Corporate taxes.

It's really just a flat tax of 9% - It's actually pretty impressive.

This plan would payoff the debt...

State taxes are a different animal, however this plan would limit state taxes ..

In theory you would be forcing states to lower their taxes because no one could afford 9% + the 10-20% of state taxes.

Its a clever idea but it wont work....

He is trying to dictate an economy through taxation - more crony capitalism...
 
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editec

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LOOPHOLES that this plan will plug?

Can any of you who support this plas name a single loophole that it will plug?

Loophole a powerful theme when we talk about tax reform, but one with NO real SUBSTANCE.

Name the loopholes any of the MASTERS are planning on plugging when this 9-9-9 plan is implentmented.

Name them!
 

BenNatuf

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Almost EVERYONE is ignoring the simple fact that Cain's 9% corporate taxes will eliminate what corporations deduct and require 9% tax payment.
For the FACTS check this table from the IRS:
SOI Tax Stats - Table 2 - Returns of Active Corporations
In 2008 5,847,221 corporate tax returns showed:
Reported gross receipts: $28.568 trillion
Total deductions 27.686 trillion
Net Income .984 trillion
Income subject to tax .978 trillion

Total income tax after credits: 228.5 billion or 23% of income taxed!

But under Cain's 9% ...
Estimates are nearly $2 trillion sits in cash or offshore assets by corporations that paid the 23% taxes.
Assume $1 trillion is put back into the economy.
Assumed by hiring 8 million people at $40k and the remaining spent in the economy...
The multiplier affect of 1.18 would generate another $200 billion in tax revenue!

But detractors of 9-9-9 haven't considered that!
and here is something you haven't considered that doesn't require you to make assumptions about what people will do with thier money. (the irony of that is rich since Cain himself while assuming what people will do with their money complains about detractors assuming what people will do with their money)

considering a company like wal mart.

Consider Cains formula.

Gross income - (purchases from US business' + investments) = taxable income.

for simplicity purposes we'll say they have revenue of 1B

Currently wal mart operates on about a 10% net meaning they pay at most 35% of the 100M net or around 25M plus they pay 7.65% of payroll which for wal mart considering economies of scale is only about 50% of revenue (this would include the payroll taxes), meaning they currently pay something in the area of 40M in payroll taxes for a total tax bill of roughly 75M.

under 9-9-9

1B in revenue minus purchases from US companies (which for walmart is close to ZERO) call it 5% to be charitable to the plan = 950M in revenue - investments. Investments for wal mart are tricky since the vast majority of any investment they make is going to be in building new stores, which of course means they will be subject to the 9% sales tax in doing so, so in effect they will be paying the 9%, just not in incometaxes-- it is a wash. For all practicle purposes wall mart will be taxed on virtually thier entire revenue, thats a 9% tax on 950B or around 85M in taxes a 10M tax INCREASE.

So tell me again Herman how embedded taxes will "go away"?

Normal business expenses like COL and opperations are not deductable from revenue under Cain's plan, only purchases made from US companies and investments are. So a retailor who sells mostly foriegn goods is going to have to pay a 9% tax on the revenue they use to purchase foriegn goods and a 9% tax on the revenue they use to pay thier employees. Then you get to pay a 9% sales tax when you buy it on top of the "embedded taxes" that under Cain's plan aren't going anywhere despite his claims.

9-9-nonsence, sucks, sucks, sucks.
 
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healthmyths

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You wrote"I read you folks telling us about these "loopholes" all the time, please tell me about the biggest loophole you think this plan will plug."
ANSWERS if you use the INTERNET.. great tool to find out answer to your questions??
Go to this site:
What are the largest tax expenditures?

These are the Deduction that government ALLOWS tax payers to subtract from taxes
AMOUNT in 2008 tax returns:

1) Exclusion of employer medical insurance premiums and medical care $131 billion
2) Net exclusion of pension contributions and earnings $117.7
3) Deductibility of mortgage interest on owner-occupied homes $88.5
4) Accelerated depreciation of machinery and equipment $55.9
5) Deductibility of nonbusinees state and local taxes $49.1
6) Deductibility of charitable contributions $46.8
7) Deferral of income from controlled foreign corporations $31.5
8) Capital gains exclusion on home sales $30.0
9) Deductibility of State and local property tax on owner-occupied homes $29.1
10) Child credit $28.4
11) Capital gains (except agriculture,timber, and coal) $24.2
12) Step-up basis of capital gains at death $21.5
Total of $653.7 billion
 

blastoff

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LOOPHOLES that this plan will plug?

Can any of you who support this plas name a single loophole that it will plug?

Loophole a powerful theme when we talk about tax reform, but one with NO real SUBSTANCE.

Name the loopholes any of the MASTERS are planning on plugging when this 9-9-9 plan is implentmented.

Name them!
With the 9% the prior system goes away. And with it its loopholes.
 
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healthmyths

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you wrote" they don't. he's a shill."
A) I said ASSUME they spend.. but again being a ADD victim you missed that!
B) "shill"?? Wow a MIND READER... well read my MIND right now!!!
 

editec

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LOOPHOLES that this plan will plug?

Can any of you who support this plas name a single loophole that it will plug?

Loophole a powerful theme when we talk about tax reform, but one with NO real SUBSTANCE.

Name the loopholes any of the MASTERS are planning on plugging when this 9-9-9 plan is implentmented.

Name them!
With the 9% the prior system goes away. And with it its loopholes.
WHICH loopholes?

Name one.
 

BenNatuf

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LOOPHOLES that this plan will plug?

Can any of you who support this plas name a single loophole that it will plug?

Loophole a powerful theme when we talk about tax reform, but one with NO real SUBSTANCE.

Name the loopholes any of the MASTERS are planning on plugging when this 9-9-9 plan is implentmented.

Name them!
With the 9% the prior system goes away. And with it its loopholes.
WHICH loopholes?

Name one.
well the loopholes that allow business to deduct COL and opperations from thier revenue to figure thier taxable income certainly go away.
 
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healthmyths

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What are the largest tax expenditures?

These are the Deduction that government ALLOWS tax payers to subtract from taxes
AMOUNT in 2008 tax returns:

1) Exclusion of employer medical insurance premiums and medical care $131 billion
2) Net exclusion of pension contributions and earnings $117.7
3) Deductibility of mortgage interest on owner-occupied homes $88.5
4) Accelerated depreciation of machinery and equipment $55.9
5) Deductibility of nonbusiness state and local taxes $49.1
6) Deductibility of charitable contributions $46.8
7) Deferral of income from controlled foreign corporations $31.5
8) Capital gains exclusion on home sales $30.0
9) Deductibility of State and local property tax on owner-occupied homes $29.1
10) Child credit $28.4
11) Capital gains (except agriculture,timber, and coal) $24.2
12) Step-up basis of capital gains at death $21.5
Total of $653.7 billion
 

editec

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LOOPHOLES that this plan will plug?

Can any of you who support this plas name a single loophole that it will plug?

Loophole a powerful theme when we talk about tax reform, but one with NO real SUBSTANCE.

Name the loopholes any of the MASTERS are planning on plugging when this 9-9-9 plan is implentmented.

Name them!
With the 9% the prior system goes away. And with it its loopholes.
What LOOPHOLES go away, Blast?

Can you name one?

Just one.

For extra credit tell us how much some people taxes will RISE as result of it.
 

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