Herman Cain: Tax Poor People’s Food To Finance Massive Tax Break For The Rich
The centerpiece of former pizza czar Herman Cain’s presidential campaign is his “999″ plan, which would slash taxes on the wealthy, drive up deficits to the worst point since World War II, and force low-income Americans to pay a massive nine times their current tax rate. In an interview this morning with CNN’s Candy Crowley, Cain even said food and clothing would not be exempt from the 9 percent national sales tax he would put in place if elected president. Indeed, he said it would be “fair” for a poor person to pay as much in sales taxes as Crowley does.
Taxing poor people’s food is considered so beyond the pale that even the Tea Party group FreedomWorks assumed that the final version of Cain’s tax plan would exempt food from the sales tax. Only two states, Mississippi and Alabama, charge sales tax on food.
If Cain continues to move up the ranks, he's going to have a lot more explaining to do about his 9-9-9 plan (and I'll watch the whole video if someone has a link).
The simpliest way I can think of it is that almost 50% of income earners currently pay zero federal income tax. If Cain gets his way, all of a sudden they get wacked with a 9% income tax (the only deduction is for charitable contributions) plus a 9% sales tax to boot! He diverts the issue by saying they don't have to pay the 15.4% payroll tax, but unless he plans to cancel Medicare and Social Security they will still have to pay it somewhere because it's not covered by the 9-9-9.
And currently the middle 20% of tax payers average an effective income tax of 6-7%. So again, he increases that to 9% and pounds them further with that 9% sales tax.
The top 1% pay an effective income tax of about 20%. So Cain lowers that to 9%. They do have to pay the 9% sales tax, but for a rich person that will just be on part of his income, so you don't add the two together.
So his plan seems to be a major tax increase for the low income and middle class, topped by a huge cut for the wealthy. Really?
Conservative Voice wrote: Herman Cain: Tax Poor People’s Food To Finance Massive Tax Break For The Rich
The centerpiece of former pizza czar Herman Cain’s presidential campaign is his “999″ plan, which would slash taxes on the wealthy, drive up deficits to the worst point since World War II, and force low-income Americans to pay a massive nine times their current tax rate. In an interview this morning with CNN’s Candy Crowley, Cain even said food and clothing would not be exempt from the 9 percent national sales tax he would put in place if elected president. Indeed, he said it would be “fair” for a poor person to pay as much in sales taxes as Crowley does.
Taxing poor people’s food is considered so beyond the pale that even the Tea Party group FreedomWorks assumed that the final version of Cain’s tax plan would exempt food from the sales tax. Only two states, Mississippi and Alabama, charge sales tax on food.
You are spreading quite a bit if misinformation.
Here are the states which tax grocery foods:
(Many states allow local taxation on foods.)
Alabama
Arkansas
Hawaii
Idaho
Illinois
Kansas
Louisiana
Mississippi
Missouri
North Carolina
North Dakota
Oklahoma
South Dakota
Tennessee
Utah
Virginia
West Virginia
If you misrepresent the facts in such a slapdash manner what faith can we have in your conclusions?
Well, we know that Arkansas' food sales tax is only 1.5% That doesn't exactly approach 9% does it? The fact that some states already have a food tax, just means that a federal sales tax will be added on top of it. Good thinking. Let's make sure the poor have to pay even more on their food.
LadyJazzer wrote: Why? Does something happen after the 48 seconds that changes the fact that poor people get screwed paying taxes on their food?
Since this country has more of a problem with obesity than with starvation, maybe a food tax might improve health....
And correct me if I am wrong, but food eaten at a restaurant is taxed, doesn't seem to slow McDonald's sales which are at a record high in Obama's recession. (Despite Michele's best efforts.)
Thomas Sowell: There are no solutions, just trade-offs.
