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Herman Cain Koch?

What if...? said:
Here's a question on 9-9-9.

Is there a 9% tax on stock purchases?

On purchases of foreign currency?

On futures?

Or any of the other things the wealthy actually make their money buying and selling?
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As I understand it, it is a tax on (new) goods. If that is correct, then none of those would pay a sales tax.
 
Redress said:
I suspect no sales tax, but I am not sure.
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I just had a vision of investment banks printing up stock certificates on recycled paper and then claiming it isn't a new product because it is recycled paper, LOL
 
liblady said:
additionally......he assumes that corporations would take away the "built in taxes" on the goods they sell, and we know gd well they wouldn't.
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they wouldn't have a choice but to do so. :) that's the beauty of competition.

his entire plan is flawed, and most economists don't buy it.
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actually some pretty impressive names are saying it's credible.

cain is nothing but a corporate shill, AND HIS PLAN DOES EVERYTHING FOR CORPORATIONS.
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ah. so this is going to be the attack line used against Cain should he be the nominee?

well, okay; I don't see that one getting much traction.
 
lpast said:
Cain is the corporations darling...period
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ah, so yes. everyone has been told to try to say that Cain is the corporate candidate?
 
Hare said:
Never bought into the hype surrounding Cain, but the republican base seem to have a flavor of the month style method to picking front runners lately.
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Did you buy into the hype about Obama?
 
Bardo said:
Can someone explain to me how implementing a 9% national sales tax wouldn't discourage consumers from spending money and decrease the demand for jobs? Even if the states dropped their sales tax rates to 0%, consumers would still be paying a 9% sales tax, which is higher than any state that I've lived in. I'm not understanding the whole "taxing the producer kills jobs but taxing the consumer creates jobs" shtick.


Either way, it sounds like more big government communist policy. :p
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No one can escape sales taxes. Not even people working on cash.
 
iliveonramen said:
I thought half of all Americans don't pay taxes. Isn't 9% higher than 0%?
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They don't pay taxes, because the taxes that are withheld from their checks every payday are refunded the following spring.

With Herman Cain's plan, instead of living without 15% that they won't see again for a year, they'll have to live without 9% that they won't get back. That's essentially, a 40% tax cut. Which boils down to more money, in their pockets, year-round.
 
liblady said:
because he would do away with eic and people would be taxed at $ 1. no tax incentive for buying a home, whcih would discourage lower income people from buying homes.
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Under Dodd-Frank, lower income people can't afford to buy a home anymore, anyway. Where does Herman Cain say he's going to do away with deductions?

additionally......he assumes that corporations would take away the "built in taxes" on the goods they sell, and we know gd well they wouldn't. his entire plan is flawed, and most economists don't buy it. cain is nothing but a corporate shill, AND HIS PLAN DOES EVERYTHING FOR CORPORATIONS.
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It would help small businesses tremendously and spur entrepreneurship like this country has never seen, but we can't have that, can we? Too many people would be making moneyif that happened.
 
What if...? said:
Here's a question on 9-9-9.

Is there a 9% tax on stock purchases?

On purchases of foreign currency?

On futures?

Or any of the other things the wealthy actually make their money buying and selling?
Click to expand...

I don't know. I haven't seen the particulars of the plan. Has Herman Cain put them out, yet?
 
apdst said:
You posted that for the wrong cat.
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If you haven't seen the plan why are you posting you analysis of it?

With Herman Cain's plan, instead of living without 15% that they won't see again for a year, they'll have to live without 9% that they won't get back. That's essentially, a 40% tax cut. Which boils down to more money, in their pockets, year-round.
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When you actually look at the plan it seems for those making under 120k per year it is most likely going to wind up being a tax increase:

If the family’s wage income in 2010 were $120,000, the family would enjoy disposable
income, after all payroll and individual income taxes, of $97,270. By contrast, had the 9-9-9 Plan
been in effect in 2010, then, under assumptions that I believe to be reasonable, and that are
specified in detail later in this essay, the family would have disposable income (after the present
value of all three components of the 9-9-9 plan were considered) of $96,729, or $541 less.3

If the family earned $50,000 in 2010, and no other facts changed, then the 9-9-9 Plan
would have imposed a tax increase on that family of roughly $4,800 in present value terms. This
is an extraordinarily large tax increase as a percentage of income.

Herman Cain's 9-9-9 Tax Plan by Edward Kleinbard :: SSRN
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cpwill said:
ah, so yes. everyone has been told to try to say that Cain is the corporate candidate?
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I don't really think he's the "corporate" candidate, whatever the hell that means. I just don't think he's remotely qualified to be anywhere near the White House.
 
Koch brothers is a better steward of its stakeholders' money than the US Government is.
 
Redress said:
Actually you seem unaware of his plan. Revenue neutral yes, effective tax rates on every one, not so much.
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And that leads us to this review of Herman Cain's 9-9-9 tax plan as detailed by the Brookings Institute.

The Misleading Business Tax

First of all, Mr. Cain's presentation of his plan is misleading. His "business income tax" is nothing like the current corporate tax.

Here is a simple way to prove that the two tax systems would be completely different: Currently, the corporate tax code raises about $300 billion per year with a 35% tax rate (although because of various deductions, the effective tax rate is closer to 23%). Mr. Cain estimates that his 9% business tax would raise $862 billion per year. If Mr. Cain's plan were a corporate tax, corporate profits would have to increase by a factor of six to make these numbers line up. Clearly, Mr. Cain's business tax is not a corporate tax as we know it.

So what is his business tax? Many others have looked at what few details exist of Mr. Cain's plan, and they have come to the conclusion that it resembles a value-added tax, or VAT--which is essentially a sales tax. In other words, Mr. Cain's plan would really involve a 9% personal income tax and an 18% (9% + 9%) sales tax.
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Enjoy...:2wave:
 
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