Herman Cain's '999 plan'

[sactoking]

It may just be the OP's quoted article is written by a dumbass or it may be that Cain and his team are dumbasses, either way if the 9-9-9 rates are set under the presumption that "States and municipalities would be carrying a new burden since they would have to pay the [sales] tax too." I've got some oceanfront property in Wendover to sell them. The Federal government does not have the power to levy taxes on the states or municipalities. This is why many state and municipal workers are exempt from Social Security. If they're banking on that potential revenue to fuel their 9-9-9 expect it to be closer to 11-11-11 after they get sued and lose.

 

[Gamingphreek]

Haven't read the thread, but saw this pop up in my e-mail today and thought it might be discussion worthy.

The Curious Capitalist - The Cain 9-9-9 Plan: How Much Would the 99% Pay

The problem is that this person make a HUGE assumption that, right now, employers pay 0% tax which would then jump to 9%. He then takes it further and assumes that all salaries would be cut by 9% tax.

He is finely glossed over some very key numbers in this calculation and gotten away from a purely quantitative stance into a very liberal leaning set of assumptions.

Furthermore, this person assumes that the 9% sales tax would be on everything. Used items would not be taxed. Outside of food, why would a family in this situation not be buying a lot more used items to avoid that tax?

-GP

 

[soundforbjt]

The problem is that this person make a HUGE assumption that, right now, employers pay 0% tax which would then jump to 9%. He then takes it further and assumes that all salaries would be cut by 9% tax.

He is finely glossed over some very key numbers in this calculation and gotten away from a purely quantitative stance into a very liberal leaning set of assumptions.

Furthermore, this person assumes that the 9% sales tax would be on everything. Used items would not be taxed. Outside of food, why would a family in this situation not be buying a lot more used items to avoid that tax?

-GP

His plan doen't state any exemptions other than used items.

Utilities, phone, gasoline, insurance, will they be taxed? New car sales will plummet, will "used" houses be exempt? Too many unanswered questions for me to even consider this a "plan"

 

[Gamingphreek]

His plan doen't state any exemptions other than used items.

Utilities, phone, gasoline, insurance, will they be taxed? New car sales will plummet, will "used" houses be exempt? Too many unanswered questions for me to even consider this a "plan"

Very true, I think more information is absolutely necessary. I, personally, really like the philosophy though and am anxious to hear more information. For instance, would food be taxed (Could potentially help the poor if we left the essentials untaxed; however, it would hurt revenue).

I think that while those sales are likely to go down, the people who are choosing to purchase those items (ie: Car) are a lot less likely to default on their payment. It just seems like it encourages people to be fiscally responsible before buying that new high priced item.

-GP