Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
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?
Well, it depends really. Like I said earlier, we do get much of what we pay in during the year back in February. So, if we didn't get it back it wouldn't be a cut, know what I mean? I wouldn't be against the plan because of that though. We'd get used to not getting a refund.
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?
But what about the 47% so of the people who pay no federal income tax? Their tax will go up to 9% and then they get taxed 9% again when they buy something?
Capital gains would no longer be taxed under the 999 plan, so the rich can live easier over that.
I'd like to see some numbers on it. It does one very important thing which is lower corporate taxes which is sending many overseas now. Good luck getting it passed unless of course the democrats get swept away to oblivion. Then maybe they'll take it up a notch and go for the flat tax.
It isn't corporate taxes that are sending jobs overseas. Most corporations are more than able to manage their tax rate in the current environment. Rather, it is the cost of labor, cost of benefits, over-regulation, access to incentives (handed out by foreign governments) and proximity to new markets.
Well, it depends really. Like I said earlier, we do get much of what we pay in during the year back in February. So, if we didn't get it back it wouldn't be a cut, know what I mean? I wouldn't be against the plan because of that though. We'd get used to not getting a refund.
Currently, you don't get ANY of the payroll (SS and Medicare) taxes back as a refund. A straight percentage (I believe 15.3, half paid by you, half by your employer) is straight off the top. IN ADDITION, you pay your federal income tax, some of which you may see back as a refund...assuming you like lending the government money interest free for a year. We're middle income, and pay 15.3% payroll tax and about 9% (after adjustments) federal income tax, nearly 25% combined. This is reduced to 9% under Cain's plan.
I like it...everyone has some skin in the game. And everyone pays more when the government spends more. Everyone sees a 7.65% pay increase, since employers don't have to pay that portion of your income as SS. Maybe this way, people will quit demanding more and more from the government, and do more for themselves.
...no wonder libs hate the plan...
Quote:
Originally Posted by StillwaterTownie
But what about the 47% so of the people who pay no federal income tax? Their tax will go up to 9% and then they get taxed 9% again when they buy something?
Capital gains would no longer be taxed under the 999 plan, so the rich can live easier over that.
Again, as the libs like to point out, most of the low income wage earners that are part of that 47% currently pay 15.3% in payroll tax. Even if they pay ZERO income tax, they see about a 6 percent increase in after-tax pay (6% cut in taxes). How is this a tax increase?
With regard to capital gains, given a choice, I would see it taxed at the same 9% as regular income. That is still a reduction from our current levels.
You don't get ANY of the payroll (SS and Medicare) taxes back as a refund. A straight percentage (I believe 15.3, half paid by you, half by your employer) is straight off the top. IN ADDITION, you pay your federal income tax, some of which you may see back as a refund...assuming you like lending the government money interest free for a year. We're middle income, and pay 15.3% payroll tax and about 9% (after adjustments) federal income tax, nearly 25% combined. This is reduced to 9% under Cain's plan.
I like it...everyone has some skin in the game. And everyone pays more when the government spends more. Everyone sees a 7.65% pay increase, since employers don't have to pay that portion of your income as SS. Maybe this way, people will quit demanding more and more from the government, and do more for themselves.
...no wonder libs hate the plan...
I don't hate it. I'm just trying to learn about it.
Well, it depends really. Like I said earlier, we do get much of what we pay in during the year back in February. So, if we didn't get it back it wouldn't be a cut, know what I mean? I wouldn't be against the plan because of that though. We'd get used to not getting a refund.
People can get "used to" anything really. I mean, if this 9-9-9 goes through, I guess the rest of us can eventually get used to living on a lot less, since purchasing products will have more of an impact on middle and poorer than the more wealthy. With consumers not being able to afford to purchase as much, consumption goes down, business have less demand, they are forced to cut back and cut jobs and hire less, which leads to more people out of work with NO income, purchasing less, and on and on. This, while the wealthy are sitting back, feeling they got a sweet deal. It's kinda like what we have now, really.
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?
It could increase taxes for low income due to the 9% sales tax. It might work if there was a food and drug exemption. Food basics only - no prepared foods, or beverages. Also, a tax free weekend for 'back to school' needs. No boats or ski equipment.
People can get "used to" anything really. I mean, if this 9-9-9 goes through, I guess the rest of us can eventually get used to living on a lot less, since purchasing products will have more of an impact on middle and poorer than the more wealthy. With consumers not being able to afford to purchase as much, consumption goes down, business have less demand, they are forced to cut back and cut jobs and hire less, which leads to more people out of work with NO income, purchasing less, and on and on. This, while the wealthy are sitting back, feeling they got a sweet deal. It's kinda like what we have now, really.
Hmm. Good points.
I just meant that I wouldn't be completely against the idea of not getting a refund, even though that is when we make our purchases that we cannot afford during the rest of the year.
It could increase taxes for low income due to the 9% sales tax. It might work if there was a food and drug exemption. Food basics only - no prepared foods, or beverages. Also, a tax free weekend for 'back to school' needs. No boats or ski equipment.
Having basic essentials being tax free, food (not fast food, or luxury food imo), or certain retailers that provide products that are essential for human needs being exempt from this 9% tax would help make this 9-9-9 malarkey more reasonable.
The 999 is basically a major tax increase. Pretty weird hearing it from someone who pretends to be against high taxes.
It IS fair. People who demand government services (i.e. "the poor") should have to actually pay for those services instead of billing other people.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm just trying to learn about it.
