A first attack: it'll unfairly tax the poor and middle class since 47% of Americans pay no income tax. Well, that's right! 47% of Americans have no apparent skin in the game right now. What we're missing, though, is that these same Americans pay the most regressive tax on wages in American history - the payroll tax! 7.64% of every tax-filing worker's earnings are deducted and the employer pays the other 7.64% on the top. This is over 15% in regressive taxes only levied on the productive people in this country. The 9-9-9 plan eliminates the payroll tax.
A second attack: it lets corporations off the hook and spreads the wealth from the poor people up to the richest. Just why do we have a complicated tax code with one of the highest corporate tax rates in the world? So that corporations can find loopholes! So that politicians can play their power role and jockey the code for their donors! The 9-9-9 plan removes all loopholes and transitions power of the tax code from the politicians to the people.
A third attack: a 9% sales tax is regressive! Did you know that between 12-30% of everything we purchase is embedded taxes? Because all businesses must make a profit, the cost of payroll and income taxes as well as complying with the tax code are passed down to the next purchaser of that product. By the time it's gotten to the end consumer, tens or hundreds of businesses have touched that product and added the cost of taxes into the price. 9-9-9 removes a substantial amount of compliance cost away from the business, abolishes the payroll tax and simplifies the corporate tax code by removing all loopholes.
People who are well-read on the FairTax Act (HR25/S13) understand this. When we remove the income tax, payroll tax, estate tax, investment tax and capital gains tax, the cost of goods goes down; consumers keep more of their money to spend how they choose with greater buying power; and business invest in growth rather than protection from the tax code.
What is it about the current tax code that makes the 9-9-9 plan look bad? It's a step in the right direction - with FairTax the final destination.
I have been an advocate for Herman Cain's 9-9-9 plan for the very reasons you post here. It is in actuality a step towards the Fair Tax without the immediate jump. Fair tax is going to have to be brought in in stages, and Cains plan does just that. The other Republican Candidates really cant say anything negative about Cain's plan so they attack him with the same mindset as the Liberal Left. Instead of acknowledging that his plan would work and say that they would want Cain in their administration, you have Michelle Bachman demonizing it saying "the devils in the details" ... I think the Devil is in the current tax codes!
ReplyDeleteYou all should read the plan more carefully is all I can say.It actually will rewrite some of the tax code...he also said in his own words its "revenue neutral"...what do you think that means honestly lol.
ReplyDeleteThe problem with 9-9-9 is that it was claimed to be revenue neutral...the government is too big today and its revenue needs to be cut...anyone proposing anything revenue neutral is pro big government.
ReplyDeleteI like the idea of a consumption tax but the Fair Tax was supposed to bring down the income tax to 0% and eliminate all the April 15th filling out paperwork nightmares...give me a 9-0-9 plan and I can get behind that.