Herman Cain's 9-9/0-9-9 Plan & Other Confused Ideas.

Go down

Herman Cain's 9-9/0-9-9 Plan & Other Confused Ideas.

Post by Admin on Sun Oct 23, 2011 9:54 am

Herman Cain's 9-9-9 plan is changing it's name to the 9-9/0-9-9 plan. Cain just announced that
This exempts the poor which adds the "/0" to his equation, but it doesn't just end there.

As noted economist and former Ron Paul economic adviser noted, Cain's plan implements a de facto...

hidden payroll tax which represents a fourth "nine." This serious pitfall has been unmentioned by Mr. Cain and overlooked by those who have analyzed his plan.

This adds another 9 to the end of Herman's Cain plan giving it the even catchier title of 9-9/0-9-9 plan!

According to Schiff;

Cain would replace the current system of income and payroll taxes with a 9% flat-rate personal income tax, a 9% corporate tax, and a 9% national sales tax. Great idea. Such a system would unburden businesses, provide a tax cut for most Americans, and shift taxation to consumption and away from income generation. This is exactly what our economy needs. But unlike our current corporate tax system, the plan eliminates the deductibility of wages and salaries from corporate income. The net effect is the creation of a brand new 9% tax on wages. When this fourth 9 falls from Cain's sleeve, many of his opponents will likely accuse him of cheating.

Much of the plan's virtue lies in its elimination of Social Security and Medicare taxes (payroll taxes) that fall heaviest on lower income workers. This includes the 6.2% Social Security tax and the 1.5% Medicare tax paid directly by the worker. But it also includes the 6.2% and 1.5% portions paid indirectly by workers through their employers. Payroll taxes are, in reality, a cost of employment. From the employer's perspective these costs are part of the wage package. Absent these taxes, employers could raise wages by an equivalent amount without raising labor costs. Inclusive of this portion, payroll taxes currently cost workers 15.4% of their wages.

The Cain plan scraps this tax. But the elimination of wage deductibility from corporate taxes replaces it with a 9% payroll tax. Therefore a more honest name for Cain's proposal is the 9-9-9-9 plan. The forth nine changes everything.

The problem for Herman Cain is that unless he slashes government expenditures, his pro-growth tax structure will inevitably shift more of the tax burden to low and moderate-income people. The only way to combine tax reform with tax reductions for most taxpayers is to shrink government to a more manageable scale.

Peter Schiff

Source/More Here.

“[I] saw him on ‘Stossel’ on abortion — entirely incoherent,” Krauthammer said. “On one hand, ‘people ought to have choice.’ On the other hand, ‘life is sacred from the beginning and abortion ought to be illegal.’ This isn’t a complicated issue. It’s one or the other. It can’t be both.

“Stossel was simply stunned. And if you combine it with the ‘9-9-9’ stuff, it is not that he just hasn’t thought it out. He is winging it. And that is a real problem.”

Charles Krauthammer on the Fox News Channel’s “Special Report” Friday

Read more: http://dailycaller.com/2011/10/22/krauthammer-down-on-herman-cain-he-is-winging-it/#ixzz1bbxL209w


Number of posts : 1452
Reputation : 0
Points : 7133
Registration date : 2008-08-31


Back to top Go down

Back to top

- Similar topics

Permissions in this forum:
You cannot reply to topics in this forum