Cain's 9-9-9 tax plan: is it viable?

As a general rule, I’m wary of any plan that claims to have completely solved all of our woes in one manner or another. Especially when that plan is so simple it can be slapped on a two page pamphlet that’s 60% presidential boilerplate.

Herman Cain’s 9-9-9 plan is the latest that seeks to simplify the tax system to the point that we don’t need the IRS any more. As always, it’s a flat tax system, actually similar to the Fair Tax plan, except spread across income, sales, and corporate taxes at (surprise!) 9% each. That’s probably where the 9 came from, it’ll approximate the FT’s 23-26% number.

Given the incredible lack of detail in the plan, there’s not much to say about it without spending a long damn time crunching numbers to see how much actual revenue it’d generate, but I did see something interesting: this all ends up as one gigantic tax gift for corporations and the top percenters again.

The 9-9-9 plan eliminates the payroll tax and estate tax, which brought in a combined $883 billion in 2010, or about 41 percent of the $2.16 trillion collected by the federal government last year. Cain’s proposal also wipes out taxes on capital gains and repatriated corporate profits.

The Tax Policy Center estimates that cutting capital gains taxes alone would allow 23,000 millionaires to pay no income taxes, a move that would add $11 billion to the deficit each year.

Funny, that. “Simplifying” the tax code suddenly makes for a godsend for the wealthy. Meanwhile, those of us who get tax refunds at the end of the year wouldn’t any more. Class warfare indeed.

Advertisements

2 responses to “Cain's 9-9-9 tax plan: is it viable?

  1. it is not class warfare at all . think of it like this .

    I make a 1 million dollars in a year (i dont but for arguments sake) my tax that id pay 90,000

    as opposed to somebody who makes say 9,000 a year their pay 900 instead of say 1350 your cutting off 450 off that tax goes back in their pocket. simple math man . How ever the flip side is the poor do not get tax deductions but on that same note neither do the rich . SO its fair across the board. poor and rich no difference between the two if anything this is Class neutral. It hits everybody the same percentage wise if the poor want to do better you do as the rich do you work harder get a better education(lots of free grant programs for low income people FAFSA and PELL grant) and the middle class will be helped as they make more money and can afford to send their children to college. this is the USA jack people who work hard go places and make money plain and simple.

    I was extremely poor growing up in rural PA .

    I worked hard to put my self thru college ( Associates) and now i’m doing OK making about 60,000 a year . SO i been there and done that nobody did for me BUT me.

    • @GuppyOlyn Very astute answer. There will be a few though that no matter how fair a plan is will cry that they need it to be more fair. Those people are the ones, as Starr Parker stated, that want to stay down on the plantation and be taken care of. Starr Parker is a very brave, true heroine of our times, go to her site http://www.urbancure.org. she is brilliant. Mr. Cain is right on track with his 999 Plan. It will generate more Federal Income as it is a plan of success based on a business model. By having money come back to the US more people will do business. The more success a business is the more people have jobs. More businesses are stated to support the needs of the people that work for there successful business (corporation). The small businesses start growing and hirering… See the picture? The people that say they will loose so much money, actually the Federal Government, believe in the people being under the governments control and not anyone being succesful,. If one is successful, you are punished by more and more of what you earned being taken away from you by the government. The government decides how much they can take, then they give it to another guy that the government picks (people that will or have supported them so the could get re-elected or elected. Think Unions and Solyndra).

      I think Mr. Cain’s 999 plan would also clean up some of the corruption in our government. Since the tax code is simplified, the IRS could be abolished which would save the Feds money plus we wouldn’t need Charlie Rangle and all of his team either – more cost rèductions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s