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Financial Planning / Tax Strategies
|Subject: Re: Cain 9-9-9||Date: 10/16/2011 3:03 PM|
|Author: Jeanwa||Number: 114169 of 121258|
I ran a married couple making $50,000 through turbotax tax estimator. No children, standard deduction.
No standard deduction, no personal exemption. The tax is on gross less charitable deductions.
There has been no discussion of any exemptions from the 9% sales tax under Cain's plan. While I would expect any national sales tax to have SOME exemptions, given the lack of details, I assumed none. However, loan repayments would not have sales tax (although the original purchase would have; thus, the 9% would be on a number less than $44,500 for a family with loan repayments.
Water, sewer, garbage?
I have not seen anything from Cain where he wants to abolish those programs. Google searches find plenty of people indicating that his plan does, but I can't find anything that Cain has said about it. Why do those programs no longer exist without a payroll tax? There is not "national defense tax", yet the army still gets money. They will be funded through the federal budget, which is how they are going to be funded in the future if nothing changes, since they are paying out more than they take in.
"Cain has strongly criticized the current implementation of Social Security, describing it as a "scam." He favors reforming the current system "through free market solutions."
Several times, Cain has referenced the Chilean model of redoing social security. He supports the Chilean model for younger citizens while retaining the current system for current beneficiaries."
So elimating the payroll tax 7.65*2 and replacing it with nothing will enable us to make SS/Medicare solvent?
You would pay 9% on your investment gains, unless you only lose money. The 9% is on gross income, less charitable deductions.
No tax on capital gains or dividends in the 999 plan.
"Cain's "9-9-9" plan has been called the "centerpiece" of his presidential campaign. His initial plan proposes replacing all current taxes with 9% tax on corporate income; 9% personal tax rate, and a 9% federal sales tax. Taxes such as the payroll tax, capital gains tax, and the estate tax would be eliminated under his system. According to Cain, corporations would be able to deduct costs of goods sold (provided the inputs were made in America) and capital expenditures. Deductions, except charitable giving, would be eliminated. The federal sales tax would not apply to used goods."
Businesses are going to love no deductions for wages, rent, travel, R & D, interest expense, etc.
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