Saturday Herman Cain won the straw poll in Florida (an informal vote of Republican activists from around Florida) and has the pundits speculating about his possibilities in the competitive race. One of his key plans is the "9-9-9" plan to restructure the Federal tax system.
This article from the Washington Times explains the system. What do you think?
http://www.washingtontimes.com/news/2011/sep/25/curl-cains-9-9-9-tax-plan-is-fairer-share/
Effect on J's Bikes? You guys would have to collect a 9% Federal Sales Tax on all sales and submit to the Feds - as you do with the Sales Tax you collect today. Willing to do that for a new tax system?
Wow! I had no idea the number that the wealthy in America pay that much. I will admit I always thought "Yeah, tax those rich SOB's some more, they won't miss it." Now after reading that article I know longer think that.
ReplyDeleteThe problem with his plan is that the term "flat taxes" scares people. I don't know why but it seems too.
Now my question about the 9% sales tax is if this is added on top of the state sales tax? So (in Indiana) a person too has to pay a 7% sales tax and then add another 9%? Not going to be popular with many. Then on the other hand if the individual states sales tax is abolished then where does the lost state revenue come from?
Thanks for the great read Jim!
-Todd
I will comment on all three 9's:
ReplyDelete9% Flat Tax: I think this is a discussion our country should have. I do not support a straight Flat Tax - although seemingly fair - I think the more you earn the more you should pay on a percentage basis. I personally would support a much simpler PROGRESSIVE Federal Income Tax than we now have. The PERCENTAGE a person pays should increase as earnings increase - perhaps start at 1% and stop at 20% for the highest earners (this might average about 9% - maybe this is Cain's plan!
I also think it should be on GROSS income less Mortgage Payment Interest Deduction on first homes and Donation Deductions for church and non-profit donations - PERIOD - all other loopholes close!
9% Corporate Tax: this must be done! It is now 35% and is out of line with the world. This change would let our economy BOOM! I'll never understand why the left doesn't see this!
9% Federal Sales Tax: I assume this would be in addition to State and Local Sales Taxes. This would make the total Sales Tax roughly the equivalent of the VAT (value added tax) in England that Sue and I just experienced - there it is 20% on all purchases. (9% Fed, 7-11% State and Local is near 20%).
I am not sure I support this because it is REGRESSIVE - the lower earners spend a higher percentage of their disposable income on "things" than the higher earners and therefor pay a much higher percentage of their earnings in Sales Tax.
Any thoughts on above? At least it is a plan we can discuss and think about. If Obama would only put something out there!