Herman Cain 9-9-9 plan, thoughts?

[NHL Fever]

What do you guys think of this plan? It's gaining a huge amount of popularity, but some people think that although the rates are lower, its actually an increase in taxes because it adds a new tax.

Opinions?

[Bandit]

To be honest, I haven't studied Cain's plan. But then, at least he has offered something - as opposed the what the others have offered - which is nothing more than critisizm. So, at the very least, Cain has had the guts enough to put something on the table. What have the other republican candidates (cowards?) like Romney and Perry offered?

[Shamash Don]

It's based on the Fair Tax. Neil Bortz wrote a book called The Fair Tax.

It's a consumption tax, not an additional tax. I don't know where he came up with 9%. If I remember correctly, the book gives 23%. The Fair Tax does away with the IRS. People take home every penny they earn, and people get a rebate check based on monthly expenses.

Any price one pays for goods already has any additional taxed included. If you pay $100 for something, part of that is the tax collected. It's been sometime since I read the book, but it's been studied for over twenty years.

The reason it's not popular is that the current tax system has a powerful lobby.

[Reynolds357]

What do you guys think of this plan? It's gaining a huge amount of popularity, but some people think that although the rates are lower, its actually an increase in taxes because it adds a new tax.

Opinions?

I like it in theory, but I would have to see more details.

[NHL Fever]

It's based on the Fair Tax. Neil Bortz wrote a book called The Fair Tax.

It's a consumption tax, not an additional tax. I don't know where he came up with 9%. If I remember correctly, the book gives 23%. The Fair Tax does away with the IRS. People take home every penny they earn, and people get a rebate check based on monthly expenses.

Any price one pays for goods already has any additional taxed included. If you pay $100 for something, part of that is the tax collected. It's been sometime since I read the book, but it's been studied for over twenty years.

The reason it's not popular is that the current tax system has a powerful lobby.

My understanding is that the fair tax involves total removal of income taxes, both personal and business, down to zero. All taxation is done through 23% consumption tax. The 999 is basically 9 corporate 9 personal 9 sales tax. Perhaps the grand total would amount to something similar.

The appeal to a purely sales tax is that its 100% under the individuals control as to how much they pay. I personally like this idea because it rewards savings, and it allows the poor to pay almost nothing in tax if they are truly frugal. However if they are just blowing cash on dumb things, they pay tax on it.

The downside is that it's a tax on consumption, which is what drives the economy. It drives the American economy to a disproportionate extent compared to other countries. The reason businesses like doing business in America, is because it is the largest consumer market. If you diminish the consumer market, you diminish the leverage you have to make businesses do business in the US in the first place.

[svfox]

Anytime you implement a huge change it leads to chaos.
Best is to change our system bit by bit.

[Faithful One]

Don't be deceived....IT IS A NEW FEDERAL TAX in addition to the old...and if you think it will stay at a merely 9% you are certainly deceived....in no time AT ALL the Dems will boost it to 20 % and beyond.,...and you will never be able to get rid of the consumption tax once it is in the system.

Remember this will be in addition to local and state sales taxes already in place. This will reduce demand for goods and services at a time when the econmomy is already at risk for depression.

Furthermore, it seems VERY unfair to the lower class who now pay NO tax. It forces the low wage earner to pay far more tax than he would otherwise. He must pay far more for everything he buys with his already low earnings.
I am very surprised that the Dems haven't spoken out against it in mass if they REALLY champion the poor like they say they do.

IMO ....There's no need to change the tax base based upon some false presumption that it is somehow inherently unfair.
Faithful

[HisLeast]

Taxpolicycenter.com has a decent article on it.
http://www.taxpolicycenter.org/numbe...22&DocTypeID=2

[Free Indeed]

What do you guys think of this plan? It's gaining a huge amount of popularity, but some people think that although the rates are lower, its actually an increase in taxes because it adds a new tax.

Opinions?

The plan would lower taxes on the wealthy while raising them on the middle class and working poor. According to an analysis issued by NPR a couple of days ago, under 9-9-9, the average middle class family would pay an additional $5,000 per year in taxes, while those making over a million dollars per year would see a significant decrease. It's just another example of Wall Street's war on the middle class.

[Free Indeed]

Don't be deceived....IT IS A NEW FEDERAL TAX in addition to the old...and if you think it will stay at a merely 9% you are certainly deceived....in no time AT ALL the Dems will boost it to 20 % and beyond.,...and you will never be able to get rid of the consumption tax once it is in the system.

I am very surprised that the Dems haven't spoken out against it in mass if they REALLY champion the poor like they say they do.

They have.

It's almost comical that you guys can take conservative nonsense like 9-9-9 and try to blame the Dems for it. Sort of like continuing to blame Obama for Bush's economic mess.

[Liquid Tension]

Kinda like Barak Hussein Obama continually blaming BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOSH even though he's been POTUS for what, almost 3 years.

[Luke34]

Kinda like Barak Hussein Obama continually blaming BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOSH even though he's been POTUS for what, almost 3 years.

Three entire years?! So obviously all problems are now his fault. I guess? Since everything resets itself after three years?

[Liquid Tension]

Three entire years?! So obviously all problems are now his fault. I guess? Since everything resets itself after three years?

Soooooooooooooo, when does Barak Hussein Obama take ownership of what's going on currently?????? I don't recall anyone not saying that BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOSH gave the ball quite a huge push as far as our economy is concerned, but how long will Barak Hussein Obama get a free pass.......especially since the federal debt went up by how much(?) since Barak Hussein Obama took office?? Remember, he did say he wanted the job. So now that he has it, man up instead of always blaming BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOSH, the Japan earthquake/tsunami, the Bush's Fault quake, cow farts, etc.

[HisLeast]

Soooooooooooooo, when does Barak Hussein Obama take ownership of what's going on currently?????? I don't recall anyone not saying that BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOSH gave the ball quite a huge push as far as our economy is concerned, but how long will Barak Hussein Obama get a free pass.......especially since the federal debt went up by how much(?) since Barak Hussein Obama took office?? Remember, he did say he wanted the job. So now that he has it, man up instead of always blaming BOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOSH, the Japan earthquake/tsunami, the Bush's Fault quake, cow farts, etc.

It's ok to omit Barack Obama's middle name. We'll all understand who you're talking about.

Did I miss something though? Did Mr. Obama, at any point, blame the Japan tsunami, or the earthquake cluster on George Bush?

[Reynolds357]

The plan would lower taxes on the wealthy while raising them on the middle class and working poor. According to an analysis issued by NPR a couple of days ago, under 9-9-9, the average middle class family would pay an additional $5,000 per year in taxes, while those making over a million dollars per year would see a significant decrease. It's just another example of Wall Street's war on the middle class.

Considering the lower middle class and the poor pay no taxes, they need a tax increase.