Members ThePilgrim Posted October 14, 2011 Members Share Posted October 14, 2011 What is Cain's 9-9-9 tax plan?http://townhall.com/tipsheet/guybenson/2011/10/13/9-9-9_does_the_math_work God bless Larry Quote Link to comment Share on other sites More sharing options...
Members Anon Posted October 14, 2011 Members Share Posted October 14, 2011 The best place to find out about the plan is Herman Cain's own website. Quote Link to comment Share on other sites More sharing options...
Members Pastorj Posted October 15, 2011 Members Share Posted October 15, 2011 Herman Cain's plan means that the 50% of Americans who pay no tax right now will pay 9% income tax. Quote Link to comment Share on other sites More sharing options...
Members Anon Posted October 15, 2011 Members Share Posted October 15, 2011 I don't think its right for 50% of America to not pay any taxes. I'm one of them...we get enough child tax credits and other deductions to nix any taxes we'd have to pay...but I'm willing to pay taxes because its fair. To not make everybody pay taxes is just wealth redistribution. Even Jesus paid taxes and he had no money. Quote Link to comment Share on other sites More sharing options...
Members John81 Posted October 15, 2011 Members Share Posted October 15, 2011 I don't recall what numbers he used, but Cain said there would be a certain amount that if folks made less than that per year they wouldn't have to pay the income tax. They would still have to pay the national sales tax. One of the main problems with this plan is that unless the law is changed along with this, it won't be long before those 9's are raised by congress and everyone will be taxed much more than they are now. Quote Link to comment Share on other sites More sharing options...
Members DennisD Posted October 15, 2011 Members Share Posted October 15, 2011 Yes John, your last sentence is what I'm worried about as well. It seems like a good plan but that point is really what frightens people I think. Quote Link to comment Share on other sites More sharing options...
Members ThePilgrim Posted October 15, 2011 Author Members Share Posted October 15, 2011 Don't forget it is 9-9-9. Not just a 9% income tax, but a 9% sales tax and a 9% VAT tax. What is a VAT tax? Well here is what it is. A value added tax or value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs. The "value added" to a product by a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products. It is another 9% sales tax to the end consumer (you and me). So we have two 9% sales taxes, and 9+9 equals 18% sales taxes. Plus there is no guarantee that any or all of these rates will not be raised in the future. Judging by past and present behavior of our so-called leaders and representatives in Washington I can't believe the rates will not be raised in the future. God bless, Larry Quote Link to comment Share on other sites More sharing options...
Members Invicta Posted October 15, 2011 Members Share Posted October 15, 2011 VAT is paid on each value added, but businesses registered fir VAT can claim it back, so only the ned user pays the tax. The trouble with VAT is that it is widely avoided, by traders accepting cash so not putting it through the books. In this manner they also avoid income tax. Both here and in France, I have been told "If you pay by cheque, I will have to charge you VAT." Quote Link to comment Share on other sites More sharing options...
Members John81 Posted October 15, 2011 Members Share Posted October 15, 2011 Don't forget it is 9-9-9. Not just a 9% income tax, but a 9% sales tax and a 9% VAT tax. What is a VAT tax? Well here is what it is. A value added tax or value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs. The "value added" to a product by a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products. It is another 9% sales tax to the end consumer (you and me). So we have two 9% sales taxes, and 9+9 equals 18% sales taxes. Plus there is no guarantee that any or all of these rates will not be raised in the future. Judging by past and present behavior of our so-called leaders and representatives in Washington I can't believe the rates will not be raised in the future. God bless, Larry According to Cain, 9-9-9 will raise virtually the same amount of taxes so the actual tax amount isn't seen as to be raised. According to some independent firm, Cain's tax plan will actually raise a few billion less. Cain's answer to the difference is with regards to the difference in their methods of determination. As to which ones methods will be most accurate we can't tell but likely somewhere in between. The new 9% national sales tax would effect everyone, including the poor, and would be added to every new purchase; but not to purchases of anything used. Indeed, the problem is that unless all the other tax issues are repealed, a future president or even a strong congress, could add them back along with the 9-9-9. Also, if laws are not in place to prevent the 9-9-9 from being raised, or at least to make it difficult to raise, a future president/congress will raise one or all three. Cain is a supporter of a flat tax and he says his 9-9-9 plan is a stepping stone to implementing a simple flat tax. Again, the problem with that is if existing laws are not repealed and new measures added to make it more difficult to raise the 9-9-9 taxes, there is the chance Cain, if elected president, couldn't get a flat tax implemented before his time in office were finished, all those dangers would be hanging over us. We know from history that we can't trust congress to end taxes after the fact. Unless something is done about this aspect at the same time 9-9-9 is put into effect, we would be handing congress a new tax (the national sales tax), and allowing them to keep the ability to raise that, the other taxes and to restore tax matters that were set aside but not repealed. Quote Link to comment Share on other sites More sharing options...
Members Pastorj Posted October 16, 2011 Members Share Posted October 16, 2011 I don't see the 9-9-9 plan making it through Congress, even if it is controlled by Republicans Quote Link to comment Share on other sites More sharing options...
Members Anon Posted October 16, 2011 Members Share Posted October 16, 2011 Pilgrim, it is not a VAT tax...be sure your information is correct. More information coming out on 999 all the time. Tomorrow watch the video Huckabee did with Cain tonight.... and then next week more information will be coming about about more details about the plan. Quote Link to comment Share on other sites More sharing options...
Members swathdiver Posted October 20, 2011 Members Share Posted October 20, 2011 The entire tax code is thrown away and replaced with 9-9-9. That means as Cain pointed out there will no longer be 5 hidden taxes on a loaf of bread. Taxes on gasoline would go down too. Being highly visable, if Congress tries to raise the rates, the American people can hold their feet to the fire and not re-elect them should they attempt to alter the rates in the future. Better to have it in the Constitution I think. Our way of life will change dramatically for the better if this plan is implemented. Our economy will explode with growth, competition and jobs. Some may incorrectly see this as being fair but a slight tax increase, I would say it's better to have a higher paying job with this plan than no job with the current tax code and other government hurdles keeping folks un-employed. How much more we can do for the Lord with a little more money to put into the storehouse! Quote Link to comment Share on other sites More sharing options...
Members John81 Posted October 20, 2011 Members Share Posted October 20, 2011 Actually, the tax code will only be laid aside, it won't be repealed because Cain knows he couldn't get such passed in Congress. This means that any congress, and especially a congress with a liberal president, could reinstate the old tax code quickly and easily. The old tax code added to the new taxes would greatly harm America. There is also the fact the Constitution gives no authority for the creation of a national sales tax. Why would so-called conservatives promote the idea of enacting an unconstitutional new tax that history clearly shows, if enacted, would not remain at 9% but would grow to a much more burdensome rate. Quote Link to comment Share on other sites More sharing options...
Members Invicta Posted October 20, 2011 Members Share Posted October 20, 2011 Beware of VAT (Value added Tax) Ours started at 8%, it is now 20%. Quote Link to comment Share on other sites More sharing options...
Members Anon Posted October 20, 2011 Members Share Posted October 20, 2011 HIs plan is NOT a VAT tax....and John...who is to say he can't get it thrown out? That's what people are saying..."Oh this plan can't work because of liberals". WELL?! If its a good plan, lets still support the man! Quote Link to comment Share on other sites More sharing options...
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