Cain: People Will Demand 999 Even Though It Raises Their Taxes

[Weapon X]

Cain: People Will Demand 999 Even Though It Raises Their Taxes

By Pat Garofalo on Oct 16, 2011 at 11:25 am

2012 GOP presidential hopeful Herman Cain has risen in the polls recently, and his 999 tax plan was the star of the GOP primary debate last week (with the number nine warranting 85 different mentions). But more and more analysts are pointing out that the plan entails a big tax increase on low- and middle-income Americans, while it would cut taxes for the wealthiest Americans.

Cain has vehemently protested that his plan would raise taxes on the poorest Americans (in part by saying they will just shift their consumption to used goods, which are exempted from his proposed nine percent sales tax). But today, Cain finally admitted to NBC’s David Gregory that some Americans would, in fact, pay more in taxes under his plan due to the sales tax. But Cain think those people will demand that 999 get implemented anyway:

CAIN: There is a huge amount of public support for 999. Just talk to anybody. This is what’s going to help us get it passed. The public support.

GREGORY: I just want to break that down. So you’re acknowledging this morning, which I haven’t heard you do before, that there are individuals who are going to pay more in taxes.

CAIN: There are some, yes.

GREGORY: And you think those people are going to rally around tax reform where the wealthy pay less and middle-class and lower-income folks pay more.

CAIN: Yes.

As we’ve noted, because low-income Americans spend almost all of what they earn, while the wealthy do not (and earn a significant amount of their money from investments, the income from which goes untaxed entirely under 999), Cain’s plan will be a massive shift in the tax burden down the income scale. Of course, as Cain has explained, the poor could always just buy used food in order to lower their tax rate. And evidently he believes Americans will be so overjoyed at the prospect of higher taxes that they will flood the streets to demand them.

[kenbo]

I dont think used food will come into play. More likely used clothes, appliances, electronics, cars etc.....

[Tom73]

You can tell that the questioner do not understand the people who earn more will ALWAYS pay more.

9-9-9 of 30,000 < 9-9-9 of 300,000. Most people on this site understand the ignorance of the left.

There has been different FAIR TAX proposals out there, where the 40%+ of American who do not pay income tax still would not pay any income tax.

LET PRAY FOR A REAL FAIR TAX SYSTEM TO COME IN TO PLAY.

Of course we need to get rid of Democrats and Democrat looks a like politician in the Republican Party.

Let pray for the Republic.

[Deep Purple]

Cain more of the same old same old political bickering and underhanded criminal BS. Cain is not trust worthy, because anybody that worked for the federal reserve cannot be to trusting. Beware people! Ron Paul is the only honest man running, and the only man that will bring real honest change for all people.

[randalln]

if you spend $100 you only pay $9 compared to $8.25 = .75 per $100 dollars

If you make 20,000 per year $1800 compared to $5200 now = $3400 in savings and if you have 1 kid -$2800 more so you pay 0

If you own a business you only match 9%

If you have investments you only pay 9% capital gains $100,000 = $9,000 before it was $15,000

SOOOOOOOO how is it that any body is paying more

the left needs to just stick to there HOPE & CHANGE and see how much they have in there pocket when he is thru.................

[Mongo]

999 will never work? why.....well first of all.. I like it!! a flat tax will get rid of a lot of loop holes and most of the IRS

but.....and there is always a BUT. the politicians will never pass it because loop holes allow them to milk the system and after all they put the loop holes in there so they can skirt the law

[randalln]

999 will never work? why.....well first of all.. I like it!! a flat tax will get rid of a lot of loop holes and most of the IRS

but.....and there is always a BUT. the politicians will never pass it because loop holes allow them to milk the system and after all they put the loop holes in there so they can skirt the law

It does not have to pass if we are in a war the presidential order can not be superseded (Afghanistan )

This is how Obama is pushing thru all the orders ....................

[jmw]

since 48% don't pay any taxes it would have to go up for them....i like the plan.

[desimo]

If people are only paying 9% on income tax they will have more money. If someone is 'poor' then they also get food stamps so don't bother me with how much they will pay for food. If I do not have to pay a tax advisor I will also have more money. If the tax system is simplified then we are also a little safer from the tax system. Anyone who has received a notice of aduit or other such love letters from the IRS knows that they IRS is able to tax or bill as they choose. I know this for a fact because they did this. Perhaps a basic flat tax could help pull some of the teeth of the IRS.

[reveldog]

Cain is a wolf in sheeps clothing . i do not trust this guy

[Weapon X]

If people are only paying 9% on income tax they will have more money. If someone is 'poor' then they also get food stamps so don't bother me with how much they will pay for food. If I do not have to pay a tax advisor I will also have more money. If the tax system is simplified then we are also a little safer from the tax system. Anyone who has received a notice of aduit or other such love letters from the IRS knows that they IRS is able to tax or bill as they choose. I know this for a fact because they did this. Perhaps a basic flat tax could help pull some of the teeth of the IRS.

Run that math again because if they pay 9% income tax they will have more money to pay for the extra 9% national sales tax, just so you know if you live in California where the sales tax is 9.25% you will have to add the 9% sales tax making it a grand total of 18.5% sales tax, where are the savings now??? and by the way how will you make sure the corporatiosn dont raise proces on theikr products to pass their 9% to the middle and poor class???

This is not that simple. Read this topis so you really understand how it would "work"

Edited October 17, 2011 by Weapon X

[Scrumdiddles]

Yep it will all start with 999 plan. Then 10 10 10 plan, then 11 11 11 plan, then 12 12 12 plan and so on. Besides Herman Cain works for the international banking cartel. Why would you want more of them in Office? He sat on the board for Kansas City Federal Reserve. Yep, another one of their minions. Don't believe me, research it. Vote for him see what happens.

[randalln]

Run that math again because if they pay 9% income tax they will have more money to pay for the extra 9% national sales tax, just so you know if you live in California where the sales tax is 9.25% you will have to add the 9% sales tax making it a grand total of 18.5% sales tax, where are the savings now??? and by the way how will you make sure the corporatiosn dont raise proces on theikr products to pass their 9% to the middle and poor class???

This is not that simple. Read this topis so you really understand how it would "work"

http://dinarvets.com...0%99s-999-plan/

you must have meant to say you pay 9.25 now and after you will only pay 9% sales tax is federal .....................

Come on man pay attention in school

now

25% fed Income tax and any compony you work for matches 11%

6.25-9.25% sales tax

15% capital gains

After

9% fed.

9% sales

9%Cap

It don't get no easer than that...............

[Weapon X]

you must have meant to say you pay 9.25 now and after you will only pay 9% sales tax is federal .....................

Come on man pay attention in school

now

25% fed Income tax and any compony you work for matches 11%

6.25-9.25% sales tax

15% capital gains

After

9% fed.

9% sales

9%Cap

It don't get no easer than that...............

If you rally read what Cain is proposing he will not and tell you cannot eliminate state sales taxes, tell you more since you think you know so much and are wuilling to believe this Sim City tax rip off, tell me how Cain will eliminate state taxes.

Since Cain claims to be a tea partier show me where in the constitution it states that the federal goverment can abolish a state tax.

If you really read what Cain is proposing he will not and tell you cannot eliminate state sales taxes, tell you more since you think you know so much and are wuilling to believe this Sim City tax rip off, tell me how Cain will eliminate state taxes.

Since Cain claims to be a tea partier show me where in the constitution it states that the federal goverment can abolish a state tax.

tell you more read this analysis and see that your math and blind faith is the pizza man is mistaken

[randalln]

If you rally read what Cain is proposing he will not and tell you cannot eliminate state sales taxes, tell you more since you think you know so much and are wuilling to believe this Sim City tax rip off, tell me how Cain will eliminate state taxes.

Since Cain claims to be a tea partier show me where in the constitution it states that the federal goverment can abolish a state tax.

he is going to require a max of 9% sales tax across the board (for all states )as of now some states don't even have sales tax.

(9% still goes to the state )

and businesses don't pay sales tax until they sale there goods (tax certificate for resale)if you do stuff on the up and up

If you do business as a DBA then you pay tax as personal income(25%) but if you incorporate then you pay 15% NOW

after you will pay 9% no matter what.................

[Redhorse]

Cain is a wolf in sheeps clothing . i do not trust this guy

I agree with you reveldog. This guy just has too many wealthy friends, some are billionares. He can't be trusted.

[tarsi]

Now I can't begin to say I understand this 999 plan of Cain's as I havent really looked at it but just taking a stab in the dark here sounds to me like he is asking the very people that can't afford taxes as is much less an increase to pay more, BUT because its his plan the 999 they or we will love it and except it with open arms................................ now is that what I'm hearing him say? welllll NOT!!!!!!!!!!!!!! you know its beginning to sound more and more like Obama and Buffett just may be on to something, now I'm not for an increase on anyone if it is avoidable, but it appears regardless of the perfect world we would like to live in thats not the case, its rather obvious there is going to have to be an increase somewhere and on someone, so IF THOSE THAT CAN AFFORD IT have no problem with it and are willing to paymore for the good of ALL Americans and AMERICA then what is the problem, people here complain about taxes on the RICH based on they think they may be in that income bracket in the near future..... are you kidding me this is a very speculative investment, and wheather we want to admit it or not a very long shot, that the long this goes on is becoming more and more apparent. I am here just like most others because I believe in this investment and want to see it happen, but you people sit here and scream and yell about our GOV. and this administration's greed( which I agree with by the way), but I think it is rather selfish and shows a great deal of greed on your parts as well, because the only reason you are hear yelling NO,NO,NO to everything Obama presents is because you think that you will be affected by it once this RV's which there is NO guareentee that it will thats just fact, but you better think long and hard about what you wish for you just may get it, because per CAIN'S 999 plan everyone( or the majority) here will be paying more and loving it per Cain. JMPO, but I smell a BIG rat trying to work his way in the hen house.

[caz1104]

Now I can't begin to say I understand this 999 plan of Cain's as I havent really looked at it but just taking a stab in the dark here sounds to me like he is asking the very people that can't afford taxes as is much less an increase to pay more, BUT because its his plan the 999 they or we will love it and except it with open arms................................ now is that what I'm hearing him say? welllll NOT!!!!!!!!!!!!!! you know its beginning to sound more and more like Obama and Buffett just may be on to something, now I'm not for an increase on anyone if it is avoidable, but it appears regardless of the perfect world we would like to live in thats not the case, its rather obvious there is going to have to be an increase somewhere and on someone, so IF THOSE THAT CAN AFFORD IT have no problem with it and are willing to paymore for the good of ALL Americans and AMERICA then what is the problem, people here complain about taxes on the RICH based on they think they may be in that income bracket in the near future..... are you kidding me this is a very speculative investment, and wheather we want to admit it or not a very long shot, that the long this goes on is becoming more and more apparent. I am here just like most others because I believe in this investment and want to see it happen, but you people sit here and scream and yell about our GOV. and this administration's greed( which I agree with by the way), but I think it is rather selfish and shows a great deal of greed on your parts as well, because the only reason you are hear yelling NO,NO,NO to everything Obama presents is because you think that you will be affected by it once this RV's which there is NO guareentee that it will thats just fact, but you better think long and hard about what you wish for you just may get it, because per CAIN'S 999 plan everyone( or the majority) here will be paying more and loving it per Cain. JMPO, but I smell a BIG rat trying to work his way in the hen house.

I'm wonderin where ur getting this "if those that can afford it have no problem with it" notion? Here's a a novel solution how bout the 51% that don't pay ANY taxes help out just a tad before we go after the the producers in society. Seems the freeloaders have had it quite easy, now its time to step up for the "good of all americans" Greed to some is evil but Envy ain't to far behind-jmo

[tarsi]

Guess that depends who or what you consider free loaders because last I checked the majority of Americans are hard working TAX paying citizens, and the majority that are unemployed are not so by choice, but they have for years as well payed into the tax system, just going thru a tough time as is many so please, please, please clarify for me just who you are refering to as free loaders???????????????

Edited October 18, 2011 by tarsi

[blessedman]

Yep it will all start with 999 plan. Then 10 10 10 plan, then 11 11 11 plan, then 12 12 12 plan and so on. Besides Herman Cain works for the international banking cartel. Why would you want more of them in Office? He sat on the board for Kansas City Federal Reserve. Yep, another one of their minions. Don't believe me, research it. Vote for him see what happens.

Thanks glad you bought this to light...................biggest part of the problem not solution!!!!!!!!!!!!!!!

[Weapon X]

he is going to require a max of 9% sales tax across the board (for all states )as of now some states don't even have sales tax.

(9% still goes to the state )

and businesses don't pay sales tax until they sale there goods (tax certificate for resale)if you do stuff on the up and up

If you do business as a DBA then you pay tax as personal income(25%) but if you incorporate then you pay 15% NOW

after you will pay 9% no matter what.................

Apparently you have neither read the proposal in Cain's own words, nor do you care to analyze what he has said. All you care about is that he is claiming a "Flat tax" which is not flat at all, a 9-9-9 that has more holes than Swiss cheese, to the fact that when asked hard questions about 9-9-9 he has said, which is posted in the forum "I don't know" its a catchy phrase as simple as that, no economist has been able to substantiate his claims.

Cain is full of hot air, with a catch phrase he can not back up and one any intelligent person would not back up.

Here is a quote i posted earlier today read, analyze and stop backing him up because he can use a pizza slogan to sell BS

1) 999 Will Raise Taxes On Middle- And Low-Income Americans, By A Lot:

Cain’s tax plan consists of three different 9 percent taxes — one on wage income (investment income is exempt), one on sales of goods and services (including food, housing, and medicine), and one on business income (investments and purchases from other businesses are deductible; wages, however, are not). But most Americans will end up paying all three of those taxes, for a combined tax rate of 27 percent of their income.

That’s because middle and low-income Americans get all, or nearly all, of their income from ordinary wages — all of which would be subject to Cain’s 9 percent wage tax — and then they spend all of their income, which means it would be taxed again by the 9 percent sales tax. Finally, the burden of the 9 percent business income tax would be passed on to them as well, either in the form of lower wages — since wages are not deductible — or in the form of higher prices for goods and services.

The bottom line is that most Americans will pay all three of Cain’s taxes, making their real federal tax rate 27 percent. Compare that to the current tax code, under which someone in the bottom quintile pays two percent of their income in federal taxes and someone in the middle quintile pays 15 percent. The fact is that pretty much everyone making up to around $100,000 a year would pay more under Cain’s plan than they do now.

2) 999 Will Give The Rich A HUGE Tax Cut:

Because the 999 plan will operate, in practice, as a 9 percent tax on wages, and an 18 percent tax on goods and services, only a fraction of a wealthy household’s income will end up subject to these taxes. That’s because wealthy people get a lot of their income from capital gains — which are exempt from the wage tax — and they don’t spend all of their income, so anything they save won’t be subject to taxes either.

Today, someone in the richest 1 percent typically pays about 30 percent of his or her income in federal taxes. Since people at the top of the income ladder make about half of their income from capital gains, and only spend about half of their income in a given year, their tax rate would drop all the way down to 13.5 percent. That’s even lower than what middle-income people pay today.

3) 999 Would Cause Massive Deficits, Enormous Amounts Of New Debt:

Despite the Cain campaign’s claims to the contrary, 999 would not raise nearly enough revenue to close the budget deficit. In an earlier analysis that mistakenly assumed his 9 percent business tax would operate like our current corporate income tax, we underestimated how much revenue it would raise. But even accounting for the new specifics, the 999 plan would still only generate around 14 percent of GDP in revenue. That’s even less than we are collecting now, when revenue levels are at historic lows. Even if Cain adopted all of the draconian spending cuts contained in the House Republican Budget, 14 percent of GDP in revenue would still result in $11.5 trillion in added debt from 2013 through 2021.

Hopefully Cain will spend a few minutes giving this analysis a read, since he has “no idea” how his plan would actually work.

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