A case for 9-9-9

Herman Cain has made the 9-9-9 tax the center plank of his platform. While many/most conservatives have been arguing for a flat tax, the Republican Party Establishment and others such as Michelle Bachman now seem to criticize it and embrace the current tax structure.

To reiterate, Cain’s 9-9-9 tax provides the following:

Ends nearly all deductions and special interest favors
Ends payroll taxes
Ends the Death Tax
Features zero tax on capital gains and repatriated profits
Lowest marginal rates on production
Allows immediate expensing of business investments
Eliminates double taxation of dividends
Maintains charitable deductions

Major criticisms include:

Adds new taxes that can be increased
Unfairly taxes the poor
Comes up 10% short on the current tax needs

Let’s take these one-by-one:

Adds new taxes that can be increased – All taxes can be increased, and if the legislative power is in place to increase these, it can also increase just the current Federal tax.
Unfairly taxes the poor – Not true! Currently a working individual pays 15.6% in payroll taxes PLUS a possible 10% rate on their AGI which are eliminated and replaced by the 9% individual flat tax.
Comes up 10% short on the current tax needs – perhaps. BUT the stimulus effect of this tax model should more than make up for the difference.

Additional benefits are the taxing of the shadow economy and cash/unreported income via the 9% National Sales Tax.

Tags: 999, Cain, Herman, tax

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Comment by Jeff Waller on October 17, 2011 at 4:43pm: Scott,

I can't say I remember ever paying sales tax for a used car unless it was from a used car lot (professional).

For every one of those cars, I should have been horse whipped!

Anyway, the point is, if you payed sales tax on a 73 Chevy that you bought from a relative, who did you pay it to?

Comment by Scott Casteel on October 17, 2011 at 4:38pm: Sales tax on NEW items only. That would eliminate the need for another Boston Tea Party! Remember? The first one was over double taxation. Wonder what those 'Indians' would have done today if they could come back and see how many times my family paid sales tax on that old '73 Chevy we kept trading back and forth? Guess we should've had our own Detroit Auto Party when this all started.

Comment by Edward Moses on October 16, 2011 at 10:52pm: Gabby: I don't have a high paying job,nor did I ever have one. I trimmed trees, dug ditches by hand, sold tires for cars and someauto parts along side of my first job. I had 4 children in college at the same time and I paid my dues at low paying jobs for quite a while. Perry still doesn't trip my trigger. I ran for office from city council to Governor of he state with m my own money and had several of my plankd addoptive by the legislature. Of course receive no recognition for the progress it gave the citizens. I have written letters pointing out our govesrors violationof the state constitution on more then one occasion.The Reform Party was abotut 20 years ahead of the tea party. Its platform was battling some of the same issuses that the Tea Party in now waking up to the problems that was apparent 2- some years ago. NAFTA, UN Domination(taspayers paying the bills), Get out the UN and get the UN out of the United States, abolish the Federal reserve and create jobs in the United States by using fare trade agreement instead of Free Trade agreement. I have been at the table trying to change thing for a lot longer than you have Gabby. At 78 I have been involve in politics with both Democrats and Republicans for a long time. I learn of the CFR and Trilateral Commission about 30years ago.

Comment by Rev. Dan C. Corley on October 16, 2011 at 9:53pm: I USED to like Michelle Bachman and was hoping for her to have at least a vice-presidental slot on the Republican ticket. Michelle.....WHAT HAPPENED TO YOUR COMMON SENSE? To say that Mr. Cain's 9-9-9 would cause taxes for the poor to go up is jutt so fat off base that it is shocking. I am an evangelist and certainly do not make "the big money", but my annual tax rate is 13.7. To say it would help the big corporations??? Many or most of them pay ZERO now, while the "Mom and Pop" businesses on which MOST of our economy is founded, pay from 11 to as much as 19%As far as the "Final 9", yes I would be most pleased to pay an extra 4 cents for a loaf of breaed, because that is the miximum it could go up and probably would instead actually drop in price as soon as the "hidden taxes" which the farmer(remember Obama's failed attempt to make all farm equipment drivers get a commercial or CDL license) pays on his equipment and his hired hands if he can afford any, to the flour mill where they have to pay coporate taxes and payroll taxes and after adding these costs on, it goes to the commercial bakery (Again coporate and payrole tax which is passed on to the distributor) and the distributor who has to pay over $4 a gallon for diesel fuel, PLUS corporate and payrole taxes, then to the retailler and again it is the same taxes which they have to pay. So who winds up paing $2.25 for a loaf of bread that should cost $1? A hint....it is NOT the government

Comment by Richard Wohltmann on October 16, 2011 at 10:47am: The dems and their media minions will attack and distort any GOP candidate with a chance of disrupting their Take-Down-USA party, so before we panic and put "anyone in the WH" as long as they beat Ozero, check this out...

http://www.teapartynation.com/forum/topics/the-romney-myth

Comment by Gabby M. on October 16, 2011 at 7:24am: you know edward if you don't want perry you must have a comfy high paying job and really don't care if

we continue to support the middleast cave to them , and support china and india with outsourcing

i like perry, he knows energy and jobs like the back of his hand, and if the administration and epa hate him, and wall str doesnt support him alot, well then, he is my guy--ron paul is a nut with foreign affairs, he is way off the charts and could never beat obama =so again, you must want obama another 4 years.

Comment by Edward Moses on October 15, 2011 at 10:13pm: I have watched ads for Rick Perry paid for by a Tea Party groups. He is not my kind of person I would want to vote for.

Comment by Roger Davies on October 15, 2011 at 9:10pm: By the way, Cain's sales tax is only on NEW things!

Comment by Roger Davies on October 15, 2011 at 8:47pm: Kimberley:

The problem with Islam is....ISLAM!

Comment by Roger Davies on October 15, 2011 at 7:31pm: adman 13:

The sales tax part 9-9-9 plan is NOT a VAT!!! It is a RETAIL SALES TAX! You can lie about something, but that just makes you a liar! As for you other Ron Paul lovers; Just what do you say to a dictator who says he wants to remove another country off the map? "They can have NUKES." Oh, sure. They won't use them against people they hate. Oh, no.

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