Message Font: Serif | Sans-Serif
No. of Recommendations: 1
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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.