Cain's 9 - 9 - 9 Plan: Chart of Tax Brackets & How Much Your Taxes Would Change...

[Jhhnn]

No, they pay exactly the same rates over their entire income because they both hit all the same tax brackets (dismissing capital gains, etc.).

Utterly incorrect.

 

[Engineer]

Utterly incorrect.

Not sure what you mean. The both pay the same marginal rates over the ranges of income and both max out at the same marginal rate. Maybe I'm missing something here...

 

[Nebor]

Utterly incorrect.

Huh? Are you saying that if you make $800k a year and I make $500k a year, that we don't pay the same tax rate on our first $500k of income?

 

[Jhhnn]

No, they pay exactly the same rates over their entire income because they both hit all the same tax brackets (dismissing capital gains, etc.).

In saying no, I don't think you understand how marginal rates work. As others have said, everybody pays the same rates on whatever portion of earned income falls below the cutoff for a particular bracket, as I offered above.

If Reich were to argue that there should be higher rates on higher brackets than currently existing, I'd definitely be with him.

 

[Gonad the Barbarian]

He is arguing that. And of course I understand how marginal rates work. If for no other reason than it being explicitly explained in the very article. Just what exactly am I or Reich getting wrong here?

 

[Engineer]

In saying no, I don't think you understand how marginal rates work. As others have said, everybody pays the same rates on whatever portion of earned income falls below the cutoff for a particular bracket, as I offered above.

If Reich were to argue that there should be higher rates on higher brackets than currently existing, I'd definitely be with him.

From what I can read, you're both saying the same thing?

 

[piasabird]

Right now the taxation is not the problem. It is the exemptions, credits, tax abatements, TIFF's, Also these Department of energy green giveaways. Then all of the employment give aways. Then all the subsidizing of education. Cant we just pay for our own education locally?

One of my pet peas is tax abatements. I think the federal govt should force all people or corps receiving a tax abatement to count it as "in-kind" income and have to pay federal taxes on the income. Lets talke about fair treatment. The homeowner does not get a tax abatement and has to pay more taxes to make up for the tax abatement.

 

[Phokus]

Someone made a fantastic Hermain Cain animated gif:

 

[bfdd]

What no model or projection can take into consideration is the drastic changes that would happen everywhere due to a major shift in tax code like this. Playing with the numbers doesn't do anything justice. Prices could go way up or way down, not move at all. Who really knows. People might save more, spend more. *shrug* you'd have to really implement it and let it play out for awhile to see what really would happen.

 

[xBiffx]

you'd have to really implement it and let it play out for awhile to see what really would happen.

I hear what you are saying its just this sounds a lot like Pelosi. Careful.

 

[a777pilot]

The 9-9-9 plan has one great flaw....it is still based on income/profits. That's a great error.