999 and it not producing enough revenue.

Right now there just isn't enough information out there, and Cain is being very secretive about this plan, only putting out little tidbits at a time. I have to wonder if he is doing that because he really doesn't have any details, but is just responding to criticism as it comes along and revising his plan a little at a time to counter those. I would love to have a candidate come up with a tax plan that does simplify the crazy tax code we have now, but you don't undo decades of code with a catch phrase. You have to have a serious, well thought out, covers all the bases plan. And so far Cain's 999 plan doesn't cut it.

The best I can see coming from his 999 plan is forcing other candidates, including Obama, to address the tax code issue and look at ways to simplify it, and make it more equitable for everyone. If people start to put pressure on the candidates to actually put a plan of their own out there, not just bash Cain's plan, maybe we can get some more possibilities.

OK, WOW! I have this saved on my TV but just rewatched it here. I never realized that he just said that the people who will pay MORE in taxes are those who buy more NEW goods. SO this plan discourages the buying of NEW goods too. That means less manufacturing and less purchasing of NEW durable goods. That will KILL jobs! Everyone will buy used cars instead of new. So what happens to the auto industry? And many of the other industries that build new goods? All new combines and tractors will become obsolete as farmers would rather buy used ones to avoid the 9%. I would never buy a NEW vehicle again. WHy would I? Buy a used one almost as good and skip the 9% and on a $30,000 pick up that is $2700 savings! Bye bye manufacturing jobs.

Someone correct me if they think this is wrong.

The Viking wrote: OK, WOW! I have this saved on my TV but just rewatched it here. I never realized that he just said that the people who will pay MORE in taxes are those who buy more NEW goods. SO this plan discourages the buying of NEW goods too. That means less manufacturing and less purchasing of NEW durable goods. That will KILL jobs! Everyone will buy used cars instead of new. So what happens to the auto industry? And many of the other industries that build new goods? All new combines and tractors will become obsolete as farmers would rather buy used ones to avoid the 9%. I would never buy a NEW vehicle again. WHy would I? Buy a used one almost as good and skip the 9% and on a $30,000 pick up that is $2700 savings! Bye bye manufacturing jobs.

Someone correct me if they think this is wrong.

I think Cain is about to be hit very hard with the law of unintended consequences. It sounds good at first to say hey, this will only effect NEW stuff........without even thinking what it will do to those who manufacture NEW stuff. I think you are right Viking, but in a few days, Cain will change his mind on that. It's a work in progress.

Everybody wants an outsider business guy but you are rewarded for bold , sometimes, crazy moves in that environment..
I like Cain.
but he will throw out these loopy ideas and not think them through. It is a different skill set to be an entrepreneur than being a politician. Good guy but you need a bureaucrat mentality to run the govt.
Reagan never ran a business and neither did Clinton., two successful Presidents.
999 would tax the poorest and give a windfall to the investment class. Sounds good but not realistic. IMHO

And one more scenario that I want someone to answer for me as I just don't see the savings. Let's use that loaf of bread example he uses in the video. He says everyone from the farmer to the baker can lower their costs due to the lowering of the corporate tax rate. Let's look at all the extra costs they all have now and tell me how they can lower anything.

The Farmer, extra 9% for fuel and machinery to grow and harvest the wheat. I am assuming seeds will also go up 9%?
Trucking company. 9% for the extra fuel costs and new vehicles they rotate into fleets every year.
Baker. 9% of the yeast the other ingredients needed and equipment used to make the bread.
The packaging companies. extra 9% for the plastic used to package the bread and 9% for the machinery they have to buy to package it. Delivery trucks. Extra 9% in fuel costs for driving the bread to the stores and 9% extra cost for when they have to purchase new trucks.
The store. 9% for any and all foods they purchase to sell. (Or are they exempt from paying the 9% extra to sell it?)
The consumer who makes barely enough to get buy has to now pay another 9% on all of the groceries on top of the 9% federal tax that about 47% have never had to pay.

Their corporate tax may go down but the savings are eaten up in the rise in cost of everything they need to run their businesses.

Who exactly is going to make the cuts? And where are the savings?

archer wrote:

The Viking wrote: OK, WOW! I have this saved on my TV but just rewatched it here. I never realized that he just said that the people who will pay MORE in taxes are those who buy more NEW goods. SO this plan discourages the buying of NEW goods too. That means less manufacturing and less purchasing of NEW durable goods. That will KILL jobs! Everyone will buy used cars instead of new. So what happens to the auto industry? And many of the other industries that build new goods? All new combines and tractors will become obsolete as farmers would rather buy used ones to avoid the 9%. I would never buy a NEW vehicle again. WHy would I? Buy a used one almost as good and skip the 9% and on a $30,000 pick up that is $2700 savings! Bye bye manufacturing jobs.

Someone correct me if they think this is wrong.

I think Cain is about to be hit very hard with the law of unintended consequences. It sounds good at first to say hey, this will only effect NEW stuff........without even thinking what it will do to those who manufacture NEW stuff. I think you are right Viking, but in a few days, Cain will change his mind on that. It's a work in progress.

For once we agree. I really like Cain and admire his acomplishments. But this plan is an epic FAIL! And he can't just change his mind. There is nowhere to go with this if it shows it encourages NOT to buy anything NEW. The Dems, the poor, the 47% not paying taxes, the manufacturing industry will ALL vote against him.

And he said the elderly make money off theri investments and won't have to pay taxes on that now. But they have to still pay the 9%. But what about those who live solely on SS? He really needs to explain that. It will raise their taxes if they don't save on any capital gains if they don't have any.

Also what happens in two year or 4 or 6 if the Dems take over all houses and think that 9% is not enough and need more revenue? What if they vote to raise the federal tax back up to 36% for the top end and 15% at the bottom but leave the 9% sales (VAT) tax in place? that just tokes everyones taxes WAY up. Watch at the 4:40 mark and it shows how they thry promised never to go above 10% and it went up to 77%. The VAT does not work and is almost impossible to get rid of.

The only way I see it actually benefiting seniors is for those who have investment property, usually when they sell that property they make big capital gains and it is all taxable. But seriously, I doubt that is the majority of seniors.....there is little or no capital gains on selling your primary residence unless you have a home that has appreciated more than $250k, and I think that is per person. Capital gains on investments?....on our current tax system you would have to make quite a bit of capital gains plus dividends and interest to owe taxes.....I'm sure the seniors he hangs around with make substantial gains, and would welcome the tax break.....but for the average senior, the 99% if you will, this just isn't the case.

If you start taxing SS, that could be a huge problem, for those living on SS and maybe a little savings, they just get by, take away 9% of it and it could make the difference between buying medicines or food.....they do live that close to the line.

What also worries about me is Cain raised only $2.6 million in the last quarter with only $1.3 million on hand. Obama raises that almost daily. Perry $17 million with $15 million on hand. Romney $15 mill with $13 mill on hand. Obama has over $60 million on hand. He could run about 25 ads to every one of Cains.