Herman Cain: Tax Poor People’s Food To Finance Tax Break

All of the Republican candidates argued the 999 plan was flawed and had no chance of passing. She doesn't have to argue the merits. Your own candidates don't like it, HIB.

I've learned not to expect a lot if discussion from the conservatives here...if a question can't be answered by the word "racist ", or a couple of emoticons, they can't answer it.

LadyJazzer wrote: You sociopaths are unbelievable.... But predictable.

Oh, and people on food-stamps pay taxes on their purchases just like everyone else. So, what's your point?

Conside this. If LJ and the Occupy Wall Street people get their way, corporate taxes will rise by 10% and loopholes will disappear, right?

Guess who will pay the taxes for food corporations? The poor when they buy food.
So OWS might actually increase prices/taxes on the poor on not only food, but energy, and everything else Americans buys.
Unintended consequences? But as long as Obama gets more money to spend, we don't care who has to pay.

archer wrote: I've learned not to expect a lot if discussion from the conservatives here...if a question can't be answered by the word "racist ", or a couple of emoticons, they can't answer it.

LOL

Conservation Voice wrote: No, I hate Cain because he has simplistic solutions to complex problems.

Entia non sunt multiplicanda praeter necessitatem - entities must not be multiplied beyond necessity. I'm guessing, what with the volume of documentation that it takes to describe our current tax scheme, that we are not only beyond necessity at this point, but we are also beyond the ability to modify what we currently have to return it to a point where it contains only necessary entities. To me this is the best reason for implementing a new system instead of trying to "fix" the current spaghetti code that defines the current tax law. What we have is old, archaic, regressive and fundamentally flawed to the point where the Tower of Pisa is built on a better foundation than our tax system is.

We need the simplest solution we can find to the problem we have Wayne, not one that expands the entities beyond necessity even further than they already are. I'm certain that the final form of 9-9-9 would be more complex than its first iteration currently is, but starting simple and building in complexity, adding only what is necessary along the way, is a much better means of addressing the problem than adding another 10K pages of laws to the current tax code would ever be.

Have to agree. The current system is way too complicated. Need to get back to a reasonable base.
Even the IRS is confused by the current tax code.

Absolutely SS109....the tax code needs a major overhaul, even better, start from scratch and build a new simpler code.....but not based on faulty economics like 9,9,9. If we tried to build a fair tax code from that, the loopholes and deductions and exceptions could well make our current tax system look simple.

Guess what else we've learned about the 9-9-9 plan? Cain's 9% business tax is not a tax on profits like we have now, but rather it is a value added tax. So now Cain wants to add two new streams of income for Congress to spend (a national sales tax and a VAT), plus two new bureaucracies to run them. I'm sure the businesses in the five states that do not have a sales tax will just love hiring more accountants to do their paperwork!

A VAT would apply to gross income (which is usually more than profits) as well as all purchases from other businesses. Most startup companies do not make any profit for the first few years and currently don't pay corporate income tax. A VAT would be a huge tax increase for them because they would still have to pay tax on all purchases and sales even if they aren't making any money. In fact, assuming this conservative writer from the National Review is correct, a 9% VAT would collect about $600 billion a year.

http://www.nationalreview.com/agenda/279761/herman-cains-9-9-9-plan-has-vat-plus-sales-tax-josh-barro#.TpR1zMYN3as.twitter

That would more than double the $225 billion collected by the current corporate income tax.

http://www.irs.gov/taxstats/article/0,,id=102886,00.html

So Cain wants to add 9% to your sales tax, and more than double the corporate tax collected. And you conservatives still think this is a good idea? Guess who ends up paying if corporate revenue collected by the government is doubled? And won't it be great adding thousands of millionaires who get to pay zero federal income tax due to Cain no longer taxing capital gains. Whoopee!

One thing I learned from doing tax accounting for business, there are a lot of really smart business men and women out there who don't have a clue how taxation works, or much about economics. I'm thinking Cain is one of those. Really good business people hire tax accountants for that, and just take their advice, that way they don't have to know.

SS109 wrote:

LadyJazzer wrote: You sociopaths are unbelievable.... But predictable.

Oh, and people on food-stamps pay taxes on their purchases just like everyone else. So, what's your point?

Conside this. If LJ and the Occupy Wall Street people get their way, corporate taxes will rise by 10% and loopholes will disappear, right?

And if Herb Cain gets his way, there will be a 9% tax on every dime spent...including for the corporations, and loopholes will disappear. Yeah, their "effective rate" will be 9%, but very few corporations pay more than 14-17% now...and some, as we know, pay $0.

Yeah, I HOPE the corporate loopholes disappear. Let's kill all the loopholes, and subsidies and see how much the budget improves. Let's make sure the top 1-2% INDIVIDUALS pay their fair share... Then see how much we bring in. Then if the rates need to be adjusted, that can be looked at.