Oct 14, 2011

 
 
 
Yes Uncle Herman has become the darling of the Republican Party and it's all because of his 9-9-9 tax plan.  But what exactly is in this plan, you ask.  Well, the good folks at MSNBC has decided to answer that question for you. 
 
Here is a little of what they reported:
 
So what is it, and what does it do? It would completely change the tax structure in the country and replace it with a:

- 9% income tax,
- 9% national sales tax, and
- 9% corporate income tax

Deductions, including the popular mortgage deduction, would be eliminated. There would be an exception, however, for charities.

It eliminates the capital-gains tax, which benefits those who make money in the stock market. And it eliminates the payroll tax, which funds Social Security.

The top end would go from about a 35% income tax rate to 9%. "That's a big, big drop," Williams said, adding that the capital-gains tax would be another added benefit for the wealthiest. "People at the top would see far and away the largest share of the gains. Those people are going to see a huge tax cut."

Currently, there is no federal sales tax. There are state sales taxes, however, and Cain's plan would add 9% to those. So, in Iowa, for example, where there is a 6% sales tax, that would mean a 15% sales tax.

CLICK HERE TO READ THE ENTIRE ARTICLE.

You can also go to Cain's website and read the plan for yourself.  You know I'm all about reading and understanding for one's self.

2 comments:

  1. Yea, that triple 9 plan sucks. Sales tax here is almost 9% already and he wants to add another 9% to that. I don't even think so. That would not help the economy at all. And cutting out Social Security isn't a smart choice either.

    Again this is just the rich looking out for the rich. Granted raising taxes would help pay off our national debt faster but middle and lower class Americans can't afford to pay more for anything. And celebrities, politicians and these other rich people are all about keeping their pockets closed.

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  2. The simplicity of the plan is what is intriguing to me. If you look at numbers versus percentages, it will always look better for the rich. But the fact of the matter is the wealthiest pay more in taxes than my annual salary multiplied many times over. I'm not in favor of a "we vs. they" argument. I believe in fairness. If everyone pays x%. That seems fair to me. It may mean an increase for some and a decrease for others. But the rule is the same for everyone.

    Supposedly we would bring home more and could withstand the additional sales tax. If this plan in fact replaces the existing tax code, then alot of existing taxes go away.

    As for social security, I think it is a worthwhile program but we all know that you cannot survive off of social security income alone. To me it should be ONE of our savings plans among several. We are always told to diversify our investments. I think we should diversify our streams of income for our retirement years. I don't think we can rely solely on social security and the younger folks should be prepared should the program go away.

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