If you've been following the news, you've no doubt heard of Herman Cain and his 9-9-9 tax plan proposal.
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| cockbag |
He's also pretty funny at times. Sometimes it's not clear if he means to be, though. At a speech in August he ended by saying, "A poet once said, 'life can be a challenge, life can seem impossible, but it's never easy when there's so much on the line." Problem is that line didn't come from a poet, or Donna Summers as some suggested. It was from "Pokemon," the popular, annoying cartoon that makes kids spend all their parents money.
But what he's getting most attention for these days, is his 9-9-9 plan to reset the tax code.
OK, resetting tax code is a great idea. Resetting it to benefit mostly your rich friends: Not so cool, Herman.
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| Slingin' pepperoni and running countries |
Here's how it would work.
Cain’s 9-9-9 plan eliminates the existing tax code and replaces it with a 9% tax on personal income, a 9% business tax, and a 9% national sales tax. Under his plan there is no estate tax, no payroll tax, no tax on capital gains, no death tax, and no deductions, except for charitable contributions.
So what does that mean? Well, everyone is equal, right?
No, look at that last line. Who does that benefit the most? It's probably not you.
Analysis after analysis has shown that the 9-9-9 plan will do more to alleviate tax burden on the rich than on the poor. It will be better for large corporations while shunning small business. One of the big reasons why? Corporations, whether they are people or not, don't buy groceries, they don't buy gas, they don't buy clothes for little Billy and Suzie going back to school. People do. You do. Not corporations. And the poorest person has to buy just as much gas, probably more, as Joe Wall Street. A larger proportion of what poorer people make will end up back in the government's pockets because we all have to buy these goods. So even right down to individuals, the balance is way off.
On Friday, Cain while speaking to a crowd in Detroit, suggested a couple of changes to his 9-9-9 plan, one that would give businesses operating in "opportunity zones" breaks and exemptions for people living below the poverty line. But you can't just pander to a a crowd in Detroit one day and tell the rest of the world something else two days before. Is he going to go to Iowa next and tell people about the great corn-growing exemption?
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| Taxes will go up, but pizza will be tax deductable |
What no one is saying, though, is that this plan is a job killer.
Cain has pointed out that used items will not be taxed. So, I ask, why buy new?
Why are American businesses going to hire new people, to make new products that people aren't buying because the taxes are so much higher when they can go get something similar on eBay.









