posted on Oct, 13 2011 @ 07:02 PM
What needs to be understood is that this 999 tax plan is not as good as it looks in its political packaging.
It does not address capitol gains, which is how many wealthy people make their living. Capitol gains is not considered income under this plan.
The average middle-class American spends almost all of his money to live, while the rich do not. So the 9% federal sales tax, in addition to the local
and state sales taxes, would be a catastrophe to middle-class and poor Americans.
Also, Cain has not specified how the 9% corporate tax will be administered or kept in check. The IRS would HAVE to be kept in place just to keep tabs
on personal and corporate taxes. So there will be no savings there.
IMO, this is a horrible idea. It would rely completely on a tax base that consistently grows, meaning it relies on an ever-growing population. Once
the population leveled-off or began to shrink the tax income would shrink and then we would still have to rely on the government to contain its
spending within the tax income. We all know how that would go.
But if we could get the politicians to play by the rules, it does not account for inflation or deflation. Which means that this tax code could not
flow with the changes in economic tides.
I hope Cain is not elected, but if he is....he won't institute the 999 plan. The plan is nothing more than a catchy marketing tool and even he knows
that it will never be put in place.
...look! I found some coupons for Pizza hut! I can get a pizza for $9.99! Oh, never mind...thats my W2.