With one hour of work, a better tax plan than Cain's 999 plan

Cain's plan has some flaws, one hour of basic work and someone at marketwatch.com came up with a better plan.

Basically Cain's plan has two major flaws
1. It wouldn't raise enough money since it would reduce current revenues
2. It's highly regressive and would tax those more who can least afford to pay it which includes the poor and middle class.

Fixes from link below include
(already included - eliminating 15% payroll tax, workers get a 15% pay increase)

1. 9% is likely too low to collect enough income as the government currently collects, raise that number to 10%

2. Treat all dividends and capital gains as ordinary income. Bill Gates should pay more than someone's grandma collecting social security and a few dividends.

3. Go one step further and eliminate the corporate tax and just tax business owners instead.

4. A 9% rate applied to everyone the same is not fair to the poor and middle class who have less disposable income to pay taxes. To make the rate progressive but simple, eliminate taxes owed on the first $50,000 of income, and a tax rate of 25% on income between $50,000 and $200,000. The tax rate above $200,000 would be 40%.

With a few tweaks if the numbers don't add up exactly as projected, this plan could improve growth in the US. Social security and medicare would be paid out of general revenue.

I haven't given this plan a whole lot of thought but it sure sounds a whole lot better than any other plan I heard especially the 999 plan.

I am weary of giving our government an easy to raise national sales tax but our government is already capable of easily raising taxes if they want to. I would like to add or change the plan myself to exempt food purchased at grocery stores to a tax exempt status. This would be a better plan than the 999 plan.

ideas from link below
www.marketwatch.com...

The tax exempt idea for food purchased from grocery stores would be similar to South Carolina's tax exemption for food purchases.

The someone who came up with the ideas I believe is the author of the article or Brett Arends.



I created a new thread related to Cain's plan because this discussion is about a lot of new ideas that are not part of Cain's plan and might be considered outside the discussion of Cain's plan. It's related but not the same.
You would think our politicians could think of some creative plans to boost growth in the US.

I believe one big sticking point would be eliminating mortgage interest deduction. I could go for this modified plan though.

Note: I need to read Ron Paul's plan. It may very well be a whole lot better.

reply to post by orionthehunter


Peter Schiff has a similar criticism. Where Schiff and I disembark from MarketWatch.com is that Cain's plan could ONLY work if government cuts spending. I also agree with Schiff when he says that Herman Cain has not spoken enough about where and HOW he would cut government spending. In order for his plan to work spending would have to be cut significantly and dramatically.



I like Herman Cain's plan. However it requires some fine tuning. For instance corporations would have to have a way of deducting tax loses from payroll. Without such a mechanism payroll taxes would end up being higher and more costly to businesses(large and small) which is NOT a good thing when we're trying to spur hiring.

Nice work... 999 is a joke. Cain's a joke. 999 sounds like a recycled marketing idea for Godfather's that never made the cut.

I hope you find this article as hilarious as I did..

Richard Lowrie, Local Wells Fargo Branch Employee, Crafted Herman Cain's '9-9-9' Tax Plan

there's a couple of flaws in your strategy. the rich, which includes every politician, will never vote to increase their taxes.

why would the rich and elite give up the one form of control they have over you. the amount of wealth and income you take home.

Let's get serious and let's see a candidate get behind the Fair Tax. It will even the playing field for all including the OWS crowd.



www.fairtax.org...