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

[DrPhil]

Originally Posted by MSNBC ARTICLE

Former Godfather's Pizza CEO Herman Cain and his "9-9-9" plan stole the spotlight at a Tuesday night debate among Republican presidential candidates in New Hampshire.
The GOP candidates took their turns weighing in on Cain and their own plans to boost the economy and job creation at the debate, which focused heavily on those issues.
Cain, who's surged to second place in recent national polling, talked up the plan — which calls for a nine percent tax on personal income, business income and sales — and responded to criticism from other GOP presidential hopefuls.

http://www.msnbc.msn.com/id/44859731...012/?gt1=43001


****

Based on what I have read about 9-9-9, I do not know what to think quite yet. Cain has been getting on my nerves but politicians and politics get on my nerves.

What say you, GCers?

[PiKA2001]

As much as i'd love to only have to pay 9% Fed tax the idea of a Federal sales tax on top of already in place state sales tax turns me off to Cain's plan. In TX we would have a 17.25% sales tax with the 9-9-9 plan. That'll really spur consumer spending

[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.

[naraht]

In addition, I'd love to ask one simply question, "How did you decide on 9?" What research went into deciding that 9 was better than 10 for the sales tax or for that matter better than 8.5.

[33girl]

[SOM]

Several sites that think or report that this plan is just NG: From just tonight:
http://thinkprogress.org/economy/201...ysis-deficits/

http://www.huffingtonpost.com/2011/1...068,b=facebook

http://www.huffingtonpost.com/2011/1...068,b=facebook

http://www.politifact.com/truth-o-me...-9-9-tax-plan/

The above I just happened to know where to find without spending much time-sure that there are more (and there will be more).

[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.

[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.

[SOM]

Add this to my list of stories about Cain's 999 plan:
What’s Not To Like? Cain’s 9-9-9 Plan Hits Poor, Blows Up Deficit, Threatens Entitlements
http://tpmdc.talkingpointsmemo.com/2...up-deficit.php

[PiKA2001]

Originally Posted by SOM

Add this to my list of stories about Cain's 999 plan:
What’s Not To Like? Cain’s 9-9-9 Plan Hits Poor, Blows Up Deficit, Threatens Entitlements
http://tpmdc.talkingpointsmemo.com/2...up-deficit.php

Wait a minute here.... AFAIK the Medicaid tax and the SS tax would still be in place. I've never heard him talking about killing those taxes as part of the 9-9-9 plan.

[SOM]

This was just posted as a part of an over all review of tonight's GOP presidential debate by Mother Jones:
Herman Cain's 9/9/9 Plan Raises Taxes on the Poor:
http://motherjones.com/mojo/2011/10/...ses-taxes-poor

The whole story: GOP Debate: Perry Continues to Falter
http://motherjones.com/politics/2011...debate-roundup

[SOM]

Originally Posted by PiKA2001

Wait a minute here.... AFAIK the Medicaid tax and the SS tax would still be in place. I've never heard him talking about killing those taxes as part of the 9-9-9 plan.

PiKA2001: If you have not yet done so, read the other links I gave-You may find the answer you are looking for in them.

[DrPhil]

Hello SOM, what are you thoughts on 9-9-9?

Thanks for introducing me to MotherJones:
http://motherjones.com/politics/2011...al-health-care

[SOM]

Found the story I was thinking of by way of this report from NY Times on tonights debate: http://thecaucus.blogs.nytimes.com/2...imes&seid=auto

Story has link to:
Inside the Cain Tax Plan

By BRUCE BARTLETT-held senior policy roles in the Reagan and George H.W. Bush administrations and served on the staffs of Representatives Jack Kemp and Ron Paul.

http://economix.blogs.nytimes.com/20...cain-tax-plan/