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CNN is probably "crying" about the 999 plan because it is NOT fair. It is a tax cut for the rich and a tax increase for the poor. They would both be paying the same rate income tax, which may sound fair to you but that was never intended. The first year of the income tax only 4% paid. The poor pay a higher rate sales tax in regards to their income then the rich so that would be, and is now, a regressive tax
With over 40% not paying any fed income taxes, some on the left would complain if the poor had to pay 1 cent.
Also, Franc said, the rates would increase as the government needed more money. "Will a 9-9-9 plan inevitably over the years become a 15-15-15 plan, and ultimately a 30-30-30 plan? Or worse?" he asked.
The difference here is if the feds try to raise our taxes, we will see the increase immediately, and no politician wants to have that.
Imagine how much taxpayer money would be saved if the IRS all but disappeared, and all the tens of billions we would all collectively save by no longer having to pay for tax consultants, tax preparers and less paperwork.
Cain ALSO said he wants a 2/3rds majority requirement to raise the percentages.
Keep in mind that lower income people pay about 15.3% in payroll taxes now. These are eliminated and replaced with a 9% income tax under 999. How is that not a tax CUT for the lower wage earners? Under Cain's plan, every working person should pay less in income and payroll taxes.
One thing I don't know, how does 999 handle capital gains income? Is it taxed at 9%, the same as all other income?
I don't know why some people ask questions before doing a little research.
"It ends the Payroll Tax completely – a permanent holiday!
Cletus,
Exempting investments is not unfair. If you know anything about marginal and effective rates, then you know I am not rich person. What you do not seem to get is that money from dividends and capital gains, comes from money that has already been taxed. Here's how it actually works now.
I earn a paycheck, with has taxes withheld (15% marginal, 13.5% effective) - first tax
Being a good capitalist, I direct a portion of my net (after it has been taxed once) income to retirement investments (tax free, tax deferred, and taxable) - the taxable portion of any dividends, interest or capital gains will be taxed again, for a second tax (10% -20%)
When I retire shortly, and begin to withdraw from my retirement accounts - some of that same money will get taxed again, on a cost basis.
When I die, assuming there is any money leftover, the estate tax will be levied. If I haven't loss count, that is tax opportunity no. 4.
Now tell me again what is unfair.
Quote:
Originally Posted by Cletus Awreetus-Awrightus
I didn't read the past 8 or 9 pages, but IMO it's unfair because it exempts investments as income. It only taxes wages.
Therefore people whose incomes are derived from dividends and capital gains do not have to pay personal income taxes under Cain's plan. To me that is unfair; I think capital gains and dividends should be taxed at the same rate as wages and salaries.
Thank you for providing the link to this information. As Cain rises higher and higher in the polls the attacks and misinformation about his plan will pour out in a torrent. We will need to educate as many people as we can to prevent the liberal media from doing a Palin hit job on him.
And we've seen what happens in a free market, when one business doesn't lower prices, so the others dont as well.
They aren't beholden to lower prices in the 9-9-9 plan. Please show us the language where it says, "business must lower prices under this plan".
This only shows that you all have not read the plan, nor understand its impact.
The RICH are GOING to be TAXED LESS than they are now. CORPORATIONS are going to be TAXED LESS than they are now. AND the poor class WILL be taxed MORE than they are now.
That is why our tax system is based on a sliding scale, and not a static rate across the board.
...and it's really working great, isn't it. It's working so great that our county spends something like $400 billion a year just on tax consultants, tax preparers, tax collectors, legal fees and costs for adjudicating tax laws in our courts, and on and on. I did not even mention how much we pay in taxes to fund the IRS either.
Meanwhile, if you have a lot of money to pay lobbyists to bribe politicians or bureaucrats to carve out tax exclusions or create tax loopholes for you, then you can little to no taxes, like GE did.
You can contest the math if you like. And that has occurred. But the plan is designed to bring in the same amount as the current tax structure. Thus funding all of the same programs and expenditures, including ss and medicare. The premise, is that the lower numbers work, becuase the economic growth it will bring, by unsaddling the economy of burdensome taxes.
Your understanding of the plan is either incomplete, or you are deliberately misleading.
Quote:
Originally Posted by mohawkx
With the 999 plan, Social Security and Medicare will be completely unfunded by the employer or employee. I guess this is a good thing to the republican rank and file but probably not the best incentive for the 47 million seniors currently on SSI or the 36 million boomers soon to follow when pulling the lever in the voting booth.
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