Herman Cain's 9-9-9 Plan Seizes Debate Spotlight

[DrPhil]

To make sure I understand, the 9% Federal sales tax would be added to the 8% state sales tax in TX?

Okay, I need to map this out:

* 9% tax on personal income
* 9% tax on business income
* 9% tax on sales

What are the pros and cons of this including the con of the 17.25% TX sales tax? Cain is increasing in popularity and I hope his popularity is based on an understanding of his proposed plan.


<----visual learner

[DeltaBetaBaby]

Originally Posted by DrPhil

To make sure I understand, the 9% Federal sales tax would be added to the 8% state sales tax in TX?

Okay, I need to map this out:

* 9% tax on personal income
* 9% tax on business income
* 9% tax on sales

What are the pros and cons of this including the con of the 17.25% TX sales tax? Cain is increasing in popularity and I hope his popularity is based on an understanding of his proposed plan.


<----visual learner

It's regressive. The poorest people end up paying the largest share of their income in taxes.

[DrPhil]

Originally Posted by DeltaBetaBaby

It's regressive. The poorest people end up paying the largest share of their income in taxes.

I would say that Cain needs a course on taxes and tax transfers but he already knows what he's proposing. Instead, he needs to have lunch with Warren Buffet (if they are not already lunch buddies).

****

Presently, federal personal income tax is progressive and sales tax is regressive. The pretax and post-tax income distributions are largely indistinguishable in that the top 1%-5% still claim most of the personal income and wealth. Proposed tax plans need to be grounded in something really strong for tax payers and decision makers to want to change things on either side.

[PiKA2001]

Originally Posted by DrPhil

To make sure I understand, the 9% Federal sales tax would be added to the 8% state sales tax in TX?

The 9% would be added on top of whatever local sales taxes that are already in place.

Cain sparred with fellow GOP candidate Mitt Romney over his economic plan during the debate Tuesday night. "It's a catchy phrase. I thought it was a pizza deal at first," Romney said ofCain's 9-9-9 plan.

LOL.

I like the idea of getting rid of the current tax structure and just going with a 12% flat tax on personal income, a 20-25% Corporate tax and NO federal sales or VAT tax. I'm calling it the 12-20-NO plan.