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Cain Tax Plan - Page 2

post #21 of 27
10/22/11 at 8:51am

as someone on public assitance who doesn't always know how we will pay the bills and only is assured food for our family because of food stamps I can't fathom how this will work for our family.  We have lower bills than most but still struggle. There is no way we could pay 9% of our income and be okay, it would devastate us. I don't know how we would  be able to buy anything if we were getting charged 9% by the federal gov''t and 6% by the state gov't, on top of the fact that we wouldn't be able to pay our very reasonable mortgage, and utiility bills if we lost 9 % of our income.

 

  

okay I know that last sentence is redundant but it won't let me delete it for some reason, even though I can delete the stuff I am typingnow.

 

 

 

 

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post #22 of 27
10/22/11 at 3:58pm
Thread Starter 
Quote:
Originally Posted by Thursday Girl View Post

as someone on public assitance who doesn't always know how we will pay the bills and only is assured food for our family because of food stamps I can't fathom how this will work for our family.  We have lower bills than most but still struggle. There is no way we could pay 9% of our income and be okay, it would devastate us. I don't know how we would  be able to buy anything if we were getting charged 9% by the federal gov''t and 6% by the state gov't, on top of the fact that we wouldn't be able to pay our very reasonable mortgage, and utiility bills if we lost 9 % of our income.

 



And, of course, add an extra 9% sales tax on everything you buy.

 

Since low income families spend a larger percentage of their income, they would be paying the highest rate.

 

post #23 of 27
10/22/11 at 4:13pm

I've always heard of a flat tax as a way to eliminate the loopholes that those who can afford it find and utilize. So basically even thought the top income bracket is supposed to pay 35% they often pay little to no taxes. However, with this plan having no capital gains taxes it doesn't accomplish that at all. Usually that is how the wealthy ends up paying little in taxes. Much of their income is from investments that are currently taxed at 10-20%.

 

I've also heard of a consumption (or sales tax) being more fair as they you pay taxes on what you spend not on what you earn. Yes wealthier individuals usually buy more expensive items and spend more in a given year. They, however, spend a smaller proportion of their income.

 

So while this plan follows some ideas for simplifying and making the tax code more fair it fails to accomplish the fair part when it lowers the capital gains tax to 0.

post #24 of 27
10/31/11 at 8:25am

here's a visual representation of what the 9-9-9 plan would look like, from boing boing.  maybe that will help people understand what that really means?

(and can i just on a side note, say that i can't believe as many end-of-times fundamentalists etc there are, that something that is 6-6-6 upside down could fly with the voters??)

http://boingboing.net/2011/10/19/visualizing-herman-cains-9-9-9-plan-to-redistribute-wealth-from-the-poor-to-the-rich.html  

post #25 of 27
10/31/11 at 10:14am
Thread Starter 
Quote:
Originally Posted by hildare View Post

here's a visual representation of what the 9-9-9 plan would look like, from boing boing.  maybe that will help people understand what that really means?

(and can i just on a side note, say that i can't believe as many end-of-times fundamentalists etc there are, that something that is 6-6-6 upside down could fly with the voters??)

http://boingboing.net/2011/10/19/visualizing-herman-cains-9-9-9-plan-to-redistribute-wealth-from-the-poor-to-the-rich.html  



The link didn't work for me (said page not found)

 

post #26 of 27
10/31/11 at 11:23am

Meh it would never work.  He wants to do away with the IRS... anyone see that happening?  

post #27 of 27
11/1/11 at 8:46pm

So if you live in California with its almost 8 percent sales tax will also have a 9 percent federal sales tax?  An almost 17 percent sales tax?!

 

I wouldn't mind paying more taxes if they went to universal heathcare (not health insurance) and other benefits to all of society.... not ethanol subsidies, etc!  But I don't think a sales tax is the best way.  Those also disproportionately effects poor people since they are paying a larger percentage of their income to this tax.