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If you visit Herman Cain's web site -- http://www.hermancain.com -- you can get general details on his 9-9-9 plan. You can find a brochure on the subject here -- http://www.hermancain.com/docs/999-for-web-10-12.pdf

One thing for sure, it certainly would simplify paying personal income taxes. It also has tax benefits for domestic manufacturing and exports, which equates to jobs.

pennview wrote:If you visit Herman Cain's web site -- http://www.hermancain.com -- you can get general details on his 9-9-9 plan. You can find a brochure on the subject here -- http://www.hermancain.com/docs/999-for-web-10-12.pdf

One thing for sure, it certainly would simplify paying personal income taxes. It also has tax benefits for domestic manufacturing and exports, which equates to jobs.

Thanks for the links; however, I am still looking for a site that he referenced during the debate last night. He challenged those who do not believe in his system to "run the work sheet". I am looking for the work sheet.

His claim is that 9% of my gross will be less than 20% of my net (my current gross-tax deductibles that we now have). The 9% sales tax is definitely not good for me. I pay 6.7% sales tax now so that is a 3.3% downer (against the 999 plan). He claimed last night that we opponents just do not understand and I am wanting to give him a chance to prove he is right.

dusty wrote:The 9% sales tax is definitely not good for me. I pay 6.7% sales tax now so that is a 3.3% downer (against the 999 plan).

So ya think state and local gov's wood give up THEIR tax. I wood think it's more like for you that it wood be 6.7% PLUS 9% equaling a total of 15.7%

I can't say how 9-9-9 affects all taxpayers, but I did the calculations for a single person with no deductions earning $20,000 a year just to see how it would work. From the IRS website, federal income taxes would be $1,154 for the year. And, payroll taxes (social security and medicare) would equal $3,060 (15.3 percent of $20,000). That totals $4,214 in federal taxes for the year.

Under 9-9-9, the individual pays $1,800 (9 percent of $20,000). And, a maximum of $1,638 (9 percent of all earnings after paying $1,800 in income taxes). There are no payroll taxes. That totals $3,438 in federal taxes for a year. If the individual doesn't spend all his money on taxable items, then he'd pay less than the $1,638 in federal sales tax.

There's an asterisk to all of this. Currently, the employee pays 7.65 percent of earnings in payroll taxes and the employer pays a like amount, for a total of 15.3 percent. If the half of the payroll taxes paid by the employer are given to the employee (i.e., the employee gets an automatic pay increase of 7.65 percent) the 9-9-9 tax program works for this hypothetical person. And that's how it should work because the employer has to pay a matching amount for each employee today, so in essence it's an employee's pay that the employee never sees.

The 9 percent federal sales tax is just that. A federal tax. State sales taxes would be additional.

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judaspre1982 wrote:Ask someone who lives in Delaware or New Hampshire if they support the 999 plan. We pay no sales tax and I would like to keep it that way.

Just like any economic plan from Government, details are always fuzzy and the math is sketchy.

It's all smoke and mirrors, and by the way "Pay no attention to the man behind the curtain ".

My .02

Dave

According to what I heard on the debate, you folks who live in states with no state sales tax may still not pay state sales tax under the Cain plan. Only if the state chooses to institute a sales tax will that change.

What we are not discussing here is what services (if any), now paid for by the current tax system, would be discontinued because the revenue under 999 is insufficient. We do (maybe I should say I do) take a lot for granted.

Simple things like going to Glacier Park or Yellowstone Park are paid for by federal funds. I don't know that 999 intends to cover those kinds of costs.

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I hope everyone remembers the 9% sales tax is a federal sales tax and in addition to state and local taxes currently being paid. In addition I figure every state and local taxing entity will look at this and decide if the Fed can do it so can they. I have already determined that additional tax will destroy my shop budget. Bah Humbug. I promise I will vote against any politico favoring 9,9,9.

dusty wrote:According to what I heard on the debate, you folks who live in states with no state sales tax may still not pay state sales tax under the Cain plan. Only if the state chooses to institute a sales tax will that change.
. . .

Ahhh, but all the retailers in those states who are not currently collecting and reporting and passing on the state sales tax will have to start doing so for any Federal sales tax. Not a popular thing for them I am sure!

And for those already doing the state tax, the Federal tax would be one more thing to file etc.