Edit: So we all just think Herman Cain's 9-9-9 plan is just stupid

[Betonblck]

I've never really agreed much with this statement but with the Republican support for Herman Cain and this policy, I find it hard to argue against this statement.  So poor people who don't pay income taxes but pay payroll taxes (4%) want to start paying 9% on their income and another 9 % on all their purchases.  Feel free to chime in and refute the quote.


[h1][/h1]

[h1]Herman Cain's 9-9-9 plan: boon for rich, bust for rest[/h1]
On average, the only Americans who would see their taxes fall under Herman Cain's "9-9-9" tax reform plan are those making $200,000 a year or more, according to a new study out Tuesday by the Brooking Institute's Tax Policy Center.
The 9-9-9 plan, which has been Cain's primary talking point for weeks, would replace the current tax code with a nine percent flat income tax, a nine percent corporate tax and a nine percent national sales tax.

The reality of the proposal is a bit more complicated than that, though Cain has not fully explained the details. (Here's the summary posted on Cain's website.)

Cain touts the plan as "fair, simple, efficient, neutral, and transparent" and features "pro-growth, pro-job, pro-export economic policies."

But according to the Los Angeles Times, Cain has provided no economic basis for his claim that the 9-9-9 plan would "expand GDP by $2 trillion, create 6 million new jobs, increase business investment by one third, and increase wages by 10%."

According to the Tax Policy Center's analysis, which compares the taxes Americans currently pay (minus the payroll tax cut) to those that they would pay under Cain's plan, most Americans would see their after-tax incomes fall under the plan. (The Tax Policy Center is a joint venture of the Brookings Institution and the Urban Institute.)

Only 3.8 percent of Americans making less than $10,000 a year would receive a tax cut, according to the analysis. The average such cut would amount to about $450. Meanwhile, 70.1 percent of Americans making $200-500,000 a year would see their taxes fall, with those Americans seeing an average savings of $19,746.

Americans are more likely to benefit from Cain's plan the higher their income, according to the analysis: 88.2 percent of Americans making between $500,000 and $1 million would see an average tax cut of $70,807 under the plan, and 95.4 percent of those making more than $1 million would see cuts averaging nearly $500,000.

Conversely, more than 90 percent of Americans making between $10,000 and $50,000 a year would see tax increases of between $2,785 and $4870 on average.

The end game, according to the study, is that many wealthy Americans would see huge tax reductions under Cain's proposal, while lower earners would see the opposite. The average tax change for Americans making less than $10,000 a year would be an increase of 19.5 percent; the average tax change for those making more than a million would be a reduction of 15 percent.

In a Tuesday interview with ABC's Jake Tapper, President Obama Cain's plan doesn't amount to a new idea.

"Essentially what it says is that we're going to make sure that the wealthiest among us pay less," he said.

http://www.cbsnews.com/83...162-20122254-503544.html

 

[troymcclure]

but it has three 9's in it

 

[cosmiccanon]

So the rich get richer. yet you clowns think Obama is the worst ever. 

 

[Betonblck]

Originally Posted by TroyMcClure

but it has three 9's in it

You are right.  It is a flat 9% business tax.

I should correct the first statement, it does remove payroll taxes so instead of the 6% payroll tax or 4% current payroll tax with the recent tax cut, people pay a 9% personal income tax. 

 

[Betonblck]

I hate to start a thread with such an inflammatory quote because I really am curious about the Republicans thoughts are on this plan. Are you guys like, "I don't like Cain, he's an idiot" or "It's a good plan, I make enough that it doesn't really affect me".

So I am actually curious to what your thoughts are. It just sounds like a ridiculous plan from the standpoint of a working class person, especially when we consider the median income of US citizens.

 

[kramer]

So taxes on the middle class would go up only because right now they have less taxes then the rich do? And the rich would benefit more because they're taxed more than the middle class? Just tryin to make sure I understand this. 6 million more jobs (if that is what actually will happen) would be good

 

[andycrazn]

its a plan that came from sims city.......... plus its a bs plan anyways cause some people will be paying around 18 percent

 

[sundoobie]

So instead of something simple as 9-9-9, you rather go on with this bull crap?
http://www.fourmilab.ch/uscode/26usc/www/contents.html

The complete Internal Revenue Code is more than 24 megabytes in length, and contains more than 3.4 million words; printed 60 lines to the page, it would fill more than 7500 letter-size pages.

 

[imsleepy1234]

The 9-9-9 may sound simple, but the result does not translate to what's best for everyone.  You can already see that there is a big advantage for rich.

 

[offbad]

are the two mutually exclusive?

 

[airjordanjack]

His plan sounds simple enough; the rich get richer and the poor get poorer.

 

[deuce king]

Yeah, I would say they are most likely both.  Tune into the debate right now on CNN, live.

 

[Betonblck]

The Republicans are talking the plan down.  I just find it unbelievable that his idea can even be proposed and he can still have political support for it. 

 

[Betonblck]

Originally Posted by SunDOOBIE

So instead of something simple as 9-9-9, you rather go on with this bull crap?
http://www.fourmilab.ch/uscode/26usc/www/contents.html

The complete Internal Revenue Code is more than 24 megabytes in length, and contains more than 3.4 million words; printed 60 lines to the page, it would fill more than 7500 letter-size pages.

A simple tax plan isn't a bad idea, it's that Cain's plan is a bad idea.  The timing is also bad for this change.  You are talking about putting an entire tax preparation industry out of work. 

 

[gllahone84]

6-6-6 Plan

 

[essential1]

Would be the death blow to the American middle class..


Simplicity does not equal a good idea...

 

[vendetta]

So does that mean Democrats are either poor or poor and smart?

 

[Jordan8]

Sounds like something Hitler would say

 

[Betonblck]

Originally Posted by cartune

Sounds like something Hitler would say

How fortunate for governments that the people they administer don't think.

 

[reigndrop]

this won't be as much as a deathblow on the rich as it would on the poor.

i'm republican and i think this plan is really dumb. tax revenues would drastically fall, there's no way growth would be fast enough for revenue to be equal what it is now.

the tax is incredibly regressive, too.

you guys should do some research into cain's "economic advisor."

 

[Betonblck]

Originally Posted by reigndrop

this won't be as much as a deathblow on the rich as it would on the poor.

i'm republican and i think this plan is really dumb. tax revenues would drastically fall, there's no way growth would be fast enough for revenue to be equal what it is now.

the tax is incredibly regressive, too.

you guys should do some research into cain's "economic advisor."

Cool.  Thanks for your contribution to the thread in spite of the fact that it probably feels like you are coming into a war zone. 

I was seriously curious to if Republicans supported Cain/this plan in high numbers.  One guy on my friend's facebook was supporting Cain. 

 

[asianplayer]

I'm open to new ideas, but basically what I get from the report is rich get richer and poor get poorer.

 

[Nike Jordan]

Prepare to pay a higher sales tax.

 

[ninjahood]

da only thing this tax is gonna create is a BOOM for used items, that sales tax on goods, services, and products is gonna be 

 

[essential1]

He completely killed his plan tonight by not having a rebuttal to Mitt Romney tonight..


Another one bites the dust