Herman Cain 9-9-9 Tax Plan Details & Analysis?

Herman Cain defended his 9-9-9 tax plan against criticism from rivals seeking to halt his momentum.
But what is the 9-9-9 tax plan about? What are the details and is there a website with serious analysis about it?
Herman Cain has made his 9-9-9 tax plan the centerpiece of his GOP presidential campaign. So it must be a solid one if he's considering it that important.
Let me know the 9-9-9 Tax Plan Details and personal analysis. Do you consider it better than our current plan?

asked by Josh in Law & Ethics | 2778 views | 10-12-2011 at 09:22 PM

Herman Cain's 9-9-9 plan details are easy to explain: He wants to eliminate the existing code and replace it with a 9% tax on personal income, a 9% business tax and a 9% national sales tax.
According to Herman Cain, the 9-9-9 plan is meant to create tax equality and stabilize federal finances.
Not so many details has been released by the Herman Cain campaign about the 9-9-9 plan, so it’s impossible to do a thorough analysis.
But I can tell you something, a national sales tax is unfair to anyone who has saved over his working life. I'm not in favor of that part of the plan.
No other Republican has proposed such a sweeping overhaul of the code.

answered by Dustin | 10-12-2011 at 09:24 PM

While I'm not 100% sold on the 9-9-9 plan, there are some aspects of it that show promise. Here are a few things to keep in mind:

Cain's plan scraps the ENTIRE federal tax code, all 70,000 pages of it, and replaces it with a relatively simple format. This ditches all the deductions and loopholes that people have been complaining about.

The average middle class household currently pays an effective 15% income tax after deductions. This plan lowers it to 9%, therefore, although you're losing the deductions, your net income tax still goes down by approximately 6%.

It's easy to think that you lose that gain by paying 9% sales tax. After all 9+9= 18, right? Well, if you look at your monthly budget, you will easily see that most of your expenditures go to things to which sales tax does not apply. Rent/mortgage, utilities, phone bill, etc. Furthermore, used items also will have no national sales tax, so your used car, house, and all the stuff you buy on ebay, craigslist and at goodwill will have no national sales tax.

Now, on the items that do have the sales tax attached, you should actually see the overall prices adjust downward. Why? Because the many taxes that businesses have to pay and which are built into the cost of the items you buy (the cost is passed on to you, don't kid yourself) will be significantly lowered. When you consider that the federal corporate income tax runs upward of 30-35% right now, this should actually result in a net decrease, even after the new sales tax.

The sales tax portion also has the advantage of allowing households who are having hard times financially to lower a portion of their tax burden by simply buying fewer non-essentials, while households that are doing well will automatically contribute more when they increase their discretionary spending.

Lastly, there is the question of The Poor. How would this effect them? In the case of the sales tax, it really wouldn't affect them at all. The honest-to-goodness Poor person isn't paying for their food, because the government is already paying for it in the form of food stamps. Other essential items can mostly be bought second hand. Poor people on public assistance don't need brand new cars, etc. They can and they do buy used.

As for the income tax, that would likely increase the amount of federal income tax they pay from 0% to 9%, however, the amount of public assistance they are receiving already far surpasses that, effectively doubling their income in many cases. This is not speculation, I have actually worked with families on public assistance and I have seen the numbers first hand. It is also important to note that the income tax only applies to people who have incomes. If the new plan stimulates the economy as Mr. Cain and his supporters believe it will, then people who do not have a job now shouldn't mind paying 9% income tax once they get hired.

People are crying left and right about how people aren't paying their "fair share". The 9-9-9 plan levels that field and ensures that everyone is paying the same percentage of their income without loopholes and such, while incorporating a voluntary portion that automatically adjusts itself to the financial situation of the individual taxpayer.

answered by Guest | 10-19-2011 at 01:12 AM

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