The reason I keep dipping into this well is that ol’ Cain seems to be creeping up in the polls, and it’s looking increasingly likely that he might be a contender to go up against Obama next year, and I keep hearing yammering that the 9-9-9 plan is taxing salvation. As the WaPo illustrates, it’s not. Big quote a-coming.
Right now, nearly half of taxpayers don’t pay income taxes, but they do pay their share of payroll taxes, which amounts to 7.65 percent of wage income (though much of it is capped at $107,000). Cain would also eliminate the earned-income tax credit, which is intended to lift working Americans out of poverty. Many of these workers currently receive tax refunds.
On top of that, Cain would introduce the new sales tax, which would affect lower and moderate-income people who spend most of their income on purchases, not savings and investments. Depending on how you do the math, people now paying zero or negative taxes might be faced with a 27 percent tax on income.
In other words, while on paper Cain is promising a tax cut, in reality tens of millions of lower-income Americans would face tax increases. People in high tax brackets — 28 percent and higher — would likely see big tax cuts. (As part of his plan, Cain would also eliminate estate taxes and capital gains taxes, which, again, mostly affect higher-income people with stock and real estate investments.)
This should be plastered everywhere. If you’re not part of the wealthier chunk of the United States, you’re going to be paying more. The 9-9-9 plan is a vote to increase you’re own taxes.
Side note: am I paranoid, cynical, or racist for finding it somewhat suspicious that the first potential black GOP candidate is coming right after an election where Republicans spent half the time saying Obama was only nominated because he’s black?
One might be charitable and say that the plan isn’t about “coddling” people, but being “fair” and having everyone pay the same amounts across the board. But again, this ignores the difference between money usage at the lower end of the spectrum versus that at the higher end. For those who use the lion’s share of their money in investments would be getting tax free income via capital gains, to say nothing of tax-free inheritance or the like, the 9-9-9 plan would be a godsend. For the rest of us, it would be crippling.