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I understand the idea that a progressive tax means larger rates as income increases. I even understand that a person making 1 Mill. can afford to pay 350K in taxes. I also understand that someone making 50K paying at a rate of 17% after deductions would feel that $8500 more.
I like paying consumption taxes as I know it goes to state and local taxes. If you add on a Vat tax going to the feds it could change those rates to as much as 20% it would slow down bussiness. To be able to have a vat you need to figure out a way for ststes to fund themsleves.
Good quote needs to be fixed. Maybe with technology
It would really hurt lots of small businesses--especially the ones who depend on low/middle class consumers. Their taxes would go up dramatically, they don't have the flex in their budget to eat the extra, and purchasing power would be devastated. If those folks can't even purchase necessities, it pretty much eats whatever benefit a small business owner would get from the lower tax rate. I don't hire based on my taxes--I hire based on sales. Why would I employ people to stand there if I'm not selling anything? If my sales go down (as it would under this plan), like most businesses, I'm going to lay people off. That's just what we need in this country--more unemployment . The only people I see benefiting from this are people living on capital gains, or the folks who inherit all their money.
It would really hurt lots of small businesses--especially the ones who depend on low/middle class consumers. Their taxes would go up dramatically, they don't have the flex in their budget to eat the extra, and purchasing power would be devastated. ......snip......
false
"The FairTax is regressive and shifts the tax burden onto lower and middle income people"
The truth: The FairTax actually eliminates and reimburses all federal taxes for those below the poverty line. This is accomplished through the universal prebate and by eliminating the highly regressive FICA payroll tax. Today, low and moderate income Americans pay far more in FICA taxes than income taxes. Those spending at twice the poverty level pay a FairTax of only 11.5 percent -- a rate much lower than the income and payroll tax burden they bear today. Meanwhile, the wealthy pay the 23 percent retail sales tax on their retail purchases.
Under the federal income tax, slow economic growth and recessions have a disproportionately adverse impact on lower-income families. Breadwinners in these families are more likely to lose their jobs, are less likely to have the resources to weather bad economic times, and are more in need of the initial employment opportunities that a dynamic, growing economy provides. Retaining the present tax system makes economic progress needlessly slow and frustrates attempts at upward mobility through hard work and savings, thus harming low-income taxpayers the most.
In contrast, the FairTax dramatically improves economic growth and wage rates for all, but especially for lower-income families and individuals. In addition to receiving the monthly FairTax prebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burdens associated with each. They pay no more business taxes hidden in the price of goods and services, and used goods are tax free.
How can the FairTax generate lower net tax rates for everyone and still pay for the same real government expenditures? The answer is two-fold. Firstly, the tax base is dramatically widened by including consumer spending from the underground economy (estimated at $1.5 trillion annually), and by including illegal immigrants, those who escape their fair share today through loopholes and gimmicks. In addition, 40 million foreign tourists a year will become American taxpayers as consumers here. Secondly, not everyone's average net tax burden falls. For households whose major economic resource is accumulated wealth, the FairTax will deliver a net tax hike compared to the current system.
-------------------
How does the FairTax protect low-income and lower-middle-income families and individuals?
Under the FairTax Plan, poor people pay no net FairTax at all up to the poverty level! Every household receives a rebate that is equal to the FairTax paid on essential goods and services, and wage earners are no longer subject to the most regressive and burdensome tax of all, the payroll tax. Those spending at twice the poverty level pay a tax of only 11.5 percent -- a rate much lower than the income and payroll tax burden they bear today.
Under the federal income tax, slow economic growth and recessions have a disproportionately adverse impact on lower-income families. Breadwinners in these families are more likely to lose their jobs, are less likely to have the resources to weather bad economic times, and are more in need of the initial employment opportunities that a dynamic, growing economy provides. Retaining the present tax system makes economic progress needlessly slow, thus harming low-income people the most.
In contrast, the FairTax dramatically improves economic growth and wage rates for all, but especially for lower-income families and individuals. In addition to receiving the monthly FairTax prebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burdens associated with each. They pay no more business taxes hidden in the price of goods and services, and used goods are tax
No, I said the first you can't stand to see the first black president in the WH. I wasn't talking about mixed race.
What is the difference? How do you define black? Cain might not be 100 percent African. In America, mixed-race people of African descent have been part of the black community for a few centuries now. Why is Obama an exception?
Hi. It counts on the price of goods to drop when income tax is removed from the equation.
LOLROFL. So corporations are going to just lower the price on all their products because a new tax has been added? That doesn't make sense, since the companies will be the ones taking the hit. No way are prices on goods to drop. No way.
"The FairTax is regressive and shifts the tax burden onto lower and middle income people"
The truth: The FairTax actually eliminates and reimburses all federal taxes for those below the poverty line. This is accomplished through the universal prebate and by eliminating the highly regressive FICA payroll tax. Today, low and moderate income Americans pay far more in FICA taxes than income taxes. Those spending at twice the poverty level pay a FairTax of only 11.5 percent -- a rate much lower than the income and payroll tax burden they bear today. Meanwhile, the wealthy pay the 23 percent retail sales tax on their retail purchases.
Under the federal income tax, slow economic growth and recessions have a disproportionately adverse impact on lower-income families. Breadwinners in these families are more likely to lose their jobs, are less likely to have the resources to weather bad economic times, and are more in need of the initial employment opportunities that a dynamic, growing economy provides. Retaining the present tax system makes economic progress needlessly slow and frustrates attempts at upward mobility through hard work and savings, thus harming low-income taxpayers the most.
In contrast, the FairTax dramatically improves economic growth and wage rates for all, but especially for lower-income families and individuals. In addition to receiving the monthly FairTax prebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burdens associated with each. They pay no more business taxes hidden in the price of goods and services, and used goods are tax free.
How can the FairTax generate lower net tax rates for everyone and still pay for the same real government expenditures? The answer is two-fold. Firstly, the tax base is dramatically widened by including consumer spending from the underground economy (estimated at $1.5 trillion annually), and by including illegal immigrants, those who escape their fair share today through loopholes and gimmicks. In addition, 40 million foreign tourists a year will become American taxpayers as consumers here. Secondly, not everyone's average net tax burden falls. For households whose major economic resource is accumulated wealth, the FairTax will deliver a net tax hike compared to the current system.
-------------------
How does the FairTax protect low-income and lower-middle-income families and individuals?
Under the FairTax Plan, poor people pay no net FairTax at all up to the poverty level! Every household receives a rebate that is equal to the FairTax paid on essential goods and services, and wage earners are no longer subject to the most regressive and burdensome tax of all, the payroll tax. Those spending at twice the poverty level pay a tax of only 11.5 percent -- a rate much lower than the income and payroll tax burden they bear today.
Under the federal income tax, slow economic growth and recessions have a disproportionately adverse impact on lower-income families. Breadwinners in these families are more likely to lose their jobs, are less likely to have the resources to weather bad economic times, and are more in need of the initial employment opportunities that a dynamic, growing economy provides. Retaining the present tax system makes economic progress needlessly slow, thus harming low-income people the most.
In contrast, the FairTax dramatically improves economic growth and wage rates for all, but especially for lower-income families and individuals. In addition to receiving the monthly FairTax prebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burdens associated with each. They pay no more business taxes hidden in the price of goods and services, and used goods are tax
WASHINGTON -- In Herman Cain's America, the tax code would be very, very simple: The corporate income tax rate would be 9 percent, the personal income tax rate would be 9 percent and the national sales tax rate would be 9 percent.
But there's already a 999 plan out there, in a land called SimCity.
Long before Cain was running for president and getting attention for his 999 plan, the residents of SimCity 4 -- which was released in 2003 -- were living under a system where the default tax rate was 9 percent for commercial taxes, 9 percent for industrial taxes and 9 percent for residential taxes. (That is, of course, if you didn't use the cheat codes to get unlimited money and avoid taxes altogether.)
A screenshot from the game's default settings:
There has been all sorts of speculation about where Cain came up with the idea for his catchy plan -- Unnamed economic advisers? A clever marketing promotion pulled from the pizza industry? -- but beyond a few hardcore gamers in the comments sections of blogs, few have looked to SimCity, the land where there's a "God mode."
Kip Katsarelis, a senior producer for Maxis, the company that created the SimCity series, was excited that politicians may be looking to video games for ideas.
"We encourage politicians to continue to look to innovative games like SimCity for inspiration for social and economic change," said Katsarelis. "While we at Maxis and Electronic Arts do not endorse any political candidates or their platforms, it's interesting to see GOP candidate Herman Cain propose a simplified tax system like one we designed for the video game SimCity 4."
Adopting such a simple tax structure, Katsarelis said, would allow fantasy political leaders to focus their energy on infrastructure and national security. "Our game design team thought that an easy to understand taxation system would allow players to focus on building their cities and have fun thwarting giant lizard attacks, rather than be buried by overly complex financial systems."
When asked about similarities between Cain's plan and SimCity's default tax rates, Cain campaign spokesman JD Gordon replied, "Well, we all like 9-9-9."
Rich Lowrie, the Ohio Wells Fargo employee who is the brains behind Cain's plan, did not return a request for comment regarding whether he is a fan of SimCity and looked to the game for inspiration.
A receptionist at Lowrie's Wells Fargo office said she doubted his idea came from SimCity. "Probably not," she told The Huffington Post. "I don't think he's much of a game person."
Presumably, under the Cain plan, disasters would be turned off.
Herman Cain is the only candidate who recognizes and understand the threat we face from the reptiloids and other assorted lizard men. His pizza plan will keep American patriots safe at home and abroad from our cold-blooded adversaries
Herman Cain is the only candidate who recognizes and understand the threat we face from the reptiloids and other assorted lizard men. His pizza plan will keep American patriots safe at home and abroad from our cold-blooded adversaries
I heard a clip from the debate where Herman Cain said it was false that his 999 plan would tax food and medicine. How is that false?
what's the difference? North Carolina has a Democrat governor and she has no problem with our food being taxed.
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. The only people I see benefiting from this are people living on capital gains, or the folks who inherit all their money.
