The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Cain 9-9-9||Date: 10/16/2011 11:35 AM|
|Author: Jeanwa||Number: 114165 of 121107|
By my calculations, a married couple making $50,000 would pay $8,595 ($50,000 X .09) + ($44,500 X .09). This is compared to 2010 taxes (income plus payroll) of $9,775. So by the numbers, the 999 plan is better off, for them. This doesn't take into consideration any change in their wages or the price of goods due to the 9% tax on businesses.
Where are you getting the numbers for the current tax? What deductions does that couple making $50,000 have currently?
Where are you getting the 999 tax amount? You really think a couple making $50,000 pays 44,500 on stuff subject to sales tax?
Cain's plan has been critised, stating that individuals would end up paying the full 27% (9+9+9). The basic math is off as they wouldn't pay a full 9% of their income in sales tax, since part of their income goes to the income tax, making the first 2 nines together be 17.2%). I'm more confused about how this critic is adding in the third 9 (business tax). They seem to be simply adding it on to the other two taxes. To me, this doesn't make sense. Sure, wages and prices are affected by prices, but this isn't a new tax - its a reduction of taxes already in place. Am I missing something?
Of course with the elimination of Payroll tax (Social Security and Medicare) those programs would no longer exist.
What, if anything, does he plan to have replace SS & Medicare?
What do you plan to do to replace SS and Medicare?
What are we as a society going to do with those folks that don't/can't plan for the future?
If I make my living buying and selling stock. With Cain's plan I would have to pay ZERO income tax.
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