Fox News/Christian Science Monitor: 999 plan raises taxes on middle-class (user search)
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  Fox News/Christian Science Monitor: 999 plan raises taxes on middle-class (search mode)
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Author Topic: Fox News/Christian Science Monitor: 999 plan raises taxes on middle-class  (Read 6636 times)
Averroës Nix
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« on: October 13, 2011, 09:15:22 PM »


You completely misunderstood what he said.

Willfully misinterpreted might be a fairer way of putting it.
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Averroës Nix
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« Reply #1 on: October 13, 2011, 11:08:07 PM »

...while cutting them for the rich.
is this based on a calculation where the middle class spends more of their income than either the poor or the rich?

I would assume so.  But if Cain's plan does what it's suppose to do, all the rates should be at 9%.
Not if you include the 9% sales tax.

And the 9% VAT
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Averroës Nix
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« Reply #2 on: October 14, 2011, 12:18:20 AM »


From Cain's website:
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What else would you call that? It's certainly not a corporate income tax.
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Averroës Nix
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« Reply #3 on: October 14, 2011, 12:56:51 AM »
« Edited: October 14, 2011, 01:08:02 AM by Averroës Nix »


From Cain's website:
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What else would you call that? It's certainly not a corporate income tax.

gross income - all investments - all purchases - dividends...

yo, I think that is even more generous to the corporations than a flat corporate income tax, for a corportate income tax is calculate PRIOR to dividends, and thus Cain's plan seems to end double taxation of corportate profits.

Yes. Essentially, Cain's plan creates 3 tax brackets. Those reliant on transfer payments pay 9% twice (sales tax and business flat tax/VAT reflected in the price of goods). The middle class and the working poor pay 9% three times (sales tax, business flat tax/VAT, and income tax). And those wealthy enough that wages are not their primary source of income pay 9% twice.

Conservative tax policy analysts have raised concern over the fact that, since the business flat tax is "hidden" in the prices of goods (from the consumers perspective), this tax isn't as transparent as Cain claims.

And of course, this is just "Phase I."
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Averroës Nix
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Posts: 2,289
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« Reply #4 on: October 14, 2011, 10:05:46 AM »

How can Cain say his plan helps with jobs when he eliminates the ability for businesses to deduct the cost of wages?

dude, please:  gross income = revenue - cost of goods sold

wages are included in "costs of goods sold", and gross income is simply your profit (in any) AFTER cost of doing business (which includes wages) but BEFORE deductions

Some wages. Cost of goods sold excludes operating expenses.
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Averroës Nix
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Posts: 2,289
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« Reply #5 on: October 14, 2011, 10:18:27 AM »

So, will this kill Cain's second (or first real) momentum ?

no, because there are enough people, like me, to explain his simple plan to ignorant folk who don't know the difference between revenue and gross income.  And the more these arguments trying to tar 999 are exposed for their ignorance, the more understood the plan will become and people will begin to realize how simple 999 makes the tax code, transforming it from 70,000 pages to something most (key word) people can grasp in a single session.

The problem isn't that people can't grasp 9-9-9 in a single session. The problem is that while people like you think that they can, actual tax policy experts, including conservative ones consider it a delusional disaster that would be especially harmful to wage-earners.

Of course, you can dismiss all of these people as morons and charlatans. I expect that you will. But I have a prediction: By the time actual contests take place, Cain will be discredited, and the jmfcsts will either support Perry or eat the Romney dog food. (Of course, there's always the chance that you're not the personification of the GOP base...)
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