New York (CNNMoney) - Herman Cain's tax proposals have rocketed him to the top of the pack in the fight for the Republican presidential nomination.
But while his now-famous 9-9-9 tax plan would scrap the current tax structure in favor of a more simplified system, $90 billion in various federal taxes and fees would still be left intact.
It would be refreshing if the gutless lying right wingnut media at Fox would admit that 999 only helps America's richest people. That is why Hannity, Limpbag, Kudlow, Murdoch, Beck, and their ilk are for it.
Hitting us with 9% sales tax on top of States and County sales tax is not what we want. The cost of bread will go up and not down. Here @ Dallas this will mean 9% 7.4%....yes 16.4% on every item while lowering corporate taxes from 35% to 9%. This is not what this country needs.
That 9% sales tax is sure going to help realtors in Florida sell those empty new homes. That $200,000 home will be $218,000. Why do realtors vote for republicans?
After President Obama prevented car dealerships from going broke with his cash for clunkers program, the wealthy dealers then spent millions supporting republicans. It will be interesting to see if people will buy those Kias when they have to pay an additional $1800 on top of the Florida sales tax.
just remember small business people, more paperwork and if you make a mistake its now a FEDERAL OFFENSE
I ordered energy efficient windows at Home Depot because of President Obama's energy tax credit. I would not have bought them if I had to pay an additional $400 due to the 9% federal Cain sales tax. Why is the founder of Home Depot spending all that money on campaign contributions to republicans?
I bought a new condo last year because of President Obama's tax credit for new homes. I would not have bought it if I had to pay an additional $20,000 in Cain's federal sales tax. Why do developers support republicans?
This is a VERY bad plan. This is coming from a long time republican as well. While 999 seems lower, it will actually increase the middle and lowers taxes. If you look at how much you actually pay in federal taxes, it is VERY low. If you make 50k a year, about 5k is cut out for federal taxes alone under his idea.
Of course presidents can talk all day long. It is up to the congress to do anything the president desires. Presidents are just figure heads that talk a lot.
You guys are talking about these energy and clunker credits, but I ask this, who do you think pays for it. We do. With all the other taxes the government sucks from us. And why is the government picking and choosing which company's get bailed out? The government has no business in our economy, they can't run themselves let alone anything else.
Consider your current income tax bracket. Then take your salary and apply a 9% tax rather than the approximate 30-38%. For a married couple do it twice. Figure out how much you'll save from the word 'Go' on fed income taxes. On the sales tax, remember that it applies ONLY to new goods. This means consumer choices; choices that will have a real and clear and obvious impact on what you spend/is taxed. I also don't think it's a stretch to say that while everyone will at some point in time buy new goods, the wealthiest Americans will, because of a combination of having the means and it's what the rich do in America, bear most of the national sales tax. Again, yes, it is a sales tax 'increase', but the combination of consumer choices, lower production costs, and savings on fed income taxes should, and for the vast majority of cases will, lower taxes. And before I get labeled I'm a 25 year old that's back in school and making around 3k/month. I'm not wealthy, and I'm not connected, but I know the current tax code is so complex it has created an entire career field and our own Treasury Secretary couldn't figure it out. I know it's created a system where loopholes are abundant, and there are persistent questions due to ambiguity. This is a real plan. It's simple and it resonates. I know 16% sales tax will hit hard on specific items, but this tax plan should also create new savings for American families. Just my take on what I've seen so far.
Americans have made clear that they want elimination of corporate tax breaks that allow large companies to pay very little tax on large revenues. As well, wealthy Americans who have large deductions for other tax breaks pay lower taxes. Herman Cain's 9-9-9 tax format gets rid of these tax breaks. It is a large change and it greatly simplifies and makes fair what is now a very complicated and unfair tax code. It is the best method proposed for fixing the convoluted tax code while at the same time giving the economy across-the-board a huge boost.
Okay, so Cain doesn't care that the poor will be devastated by the 9% sales tax...but what about businesses which need demand for their products or services to survive and grow? Add 9% to every purchase and the middle class will spend less, decreasing demand and ultimately lowering corporate profits and destroying many small businesses completely.
We in Minnesota already pay a little over 8% in MN state taxes. Mr. Cains federal surcharge flat rate of 9% would bring that total to over 17% on every purchase we make. Take away the all the federal tax credits (earned income, standard deductions, mortgage, dependents, etc) we all receive, and see how "great" that 9% really is - on both state and federal income levels.
@jonB- President Obama gave 50 million uninsured people hope, saved 2 million auto related workers' jobs at GM and Chrysler, helped 40 million with the equal pay, protected 40 million people on social security and medicare, gave 99% of Americans the lowest tax rates in 50 years, waged a war on terror like no other president ever has, and still you criticize him. Turn off the gutless right wingnut hate machine at Fox.
Americans have made clear that they want elimination of corporate tax breaks that allow large companies to pay very little tax on large revenues. As well, wealthy Americans who have large deductions for other tax breaks pay lower taxes. Herman Cain's 9-9-9 tax format gets rid of these tax breaks. It is a large change and it greatly simplifies and makes fair what is now a very complicated and unfair tax code.
Mr. Cain's plan would still allow a bus driver to pay a effective rate than the hedge fund manager. In fact, the manager would pay an even lower effective rate because Cain reduces the capital gains rate to *zero*.
Mr. Cain's plan would asses at least an 18% rate on people making barely over $10,000/year from a tax exempt retirement be double taxed on the retirement funds. For them, it would be the equivalent to being forced to pay a tax just because they withdrew their own money from the bank. 9-9-9 is completely unworkable.
The original concept that only land owners had the right to vote actually has some merrit. Everyone needs to have some skin in the game. No one said Mr. Cains plan was perfect, but its a realization that things need to change.
How do you explain to right wingnuts that our government is of the people, by the people, and for the people. We are the people. Only republicans think that the corporations are people.
Wire Palladin – The energy tax credit has been around for years. It was actually better under Bush.
Herman Cain tax code is so good for 1%
So many unsubstantiated accuzations that rich support Republicans. More money backs Democrats that anything and yet you still accuse.
Exactly on the credits. 1) Who really pays for them? 2) How well did the green incentives work for producers and consumers? The biggest difference in the current administration and this type of plan is Obama's method are incentives to spur growth where Cain's is to create more consumer choices/freedom. You could've bought an already built condo with ZERO federal sales tax rather than a new one with the tax. That's a choice. Your new windows would apply to the tax, but would there be no extra money due to no federal sales tax (rather than incentive) on the condo, or perhaps extra cash on hand due to paying lower income taxes. That's a result. I just believe there are a lot of "half truth" discussions taking place on 9-9-9. Maybe it's because there are no other proposals to speak of from the GOP field? Or maybe it's just what we do now in America. Regardless, the tax code must be reformed and Cain has a plan. If nothing else can be said, at least he's done that much.
"On the sales tax, remember that it applies ONLY to new goods."
Our home will need a new roof soon ... does this mean I should wait until our neighbors replace THEIR roof, and barter for THEIR "used" shingles to circumvent the 18% tax I'd end up paying under Cains 9-9-9 plan? Same applies to new carpet, furniture, sheet rock, grass seed, trees (the list goes on and on). Absolutely defeats the whole "home improvement" theme, don't you think? I won't even get into the "used" food purchase scenario. Too early in the morning for the visual.
Country needs to stop dreaming and get to work. I mean really work. Green jobs are a joke. Get your hands dirty on real work.
Cain is a fraud, anyone who can't see that voted for W twice, thinks Palin is a viable candidate, and hasn't been paying attention to politics since 11/7/08.
America, this week, keep all of your receipts, then add an additional 9% to everything you purchase and tell me if you want to do this everyday! all other taxes on gas, alcohol, smokes, etc will be in place, this tax plan will hurt the servers of your meals, you still want to give a 15-20% tip on plus another 9% for your meal, your taxi, your home, car, etc.........
Mr. Cain proposes a 9% national sales tax on "new" items.
Consider what them means for the housing and auto industries. It would retard purchases of new cars and homes. Every economist knows that two of the biggest leading economic indicators are "new home sales" and "new auto sales."
Consider what this means for prices at the grocery stores. Food items that were tax free, are now taxed at 9%. Does the plan mean that vintage wine and aged cheese are taxed as "new" items, too? Consider what it would mean for the price of gas at the pump to suddenly jump 9%? At todays prices that means gas jumps 30-40 cents per gallon.
Consider what this means for the construction industry. Labor is currently not taxable. Suddenly, labor is taxable under the Cain plan, along with the materials. Labor is frequently a significant part of the cost of construction, sometimes over 50%.
Consider what this means for the wealthy. Cain proposes a zero capital gains tax rate. For many, that would reduce their effective rates to much lower levels. Someone should ask Mr. Cain what does he pay now, and what would he pay under 9-9-9.