Cain’s 9-9-9 Plan Would Massively Redistribute Wealth Upward

[Donnachaidh]

http://news.firedoglake.com/2011/10/12/cains-9-9-9-plan-would-massively-redistribute-wealth-upward/?source=facebook

:snip:

So there only is a short version with no details, then. But if it’s just a pure flat tax on individuals and corporations at 9% and a 9% sales tax, you’re talking about a plan where the poor will pick up the tax burden for the rich. Other taxes would actually be eliminated. All profits from multinational corporations made in foreign countries would go untaxed under his plan. All taxes on capital gains would be reduced to zero. The payroll tax would go away, at a cost of $800 billion a year to Social Security. The estate and gift tax would be abolished. The government would have massively less revenue than they acquire today. And in its place, poor people would pay 9% of their income in taxes, without exception, and a 9% sales tax on everything they buy, without exception. That means sales taxes on food, doctor visits, rent, housing purchases, car purchases, everything.

And 9-9-9 is actually a step to the actual Fair Tax, as explained by Republican economist Bruce Bartlett:

And here’s the kicker in the Cain plan. Phase 2 is merely a transition to yet another fundamental tax reform. In Phase 3, the United States would adopt the so-called Fair Tax, which would replace all federal taxes with a 30 percent sales tax on all goods and services. In a previous post, I explained why the Fair Tax is a bad idea. I went into more detail in testimony before the House Ways and Means Committee on July 26.

Whatever one thinks of the Fair Tax, it makes not the slightest bit of sense to have a plan that requires fundamental changes to the federal tax system twice to achieve its objective.

More at the link --

[HughBeaumont]

1. The "Fair" Tax:

A Sucko Idea that the fascist idle rich, fiscally well-off libertarians and useful idiots love.

[SpiralHawk]

2. "Don't be a RepubliSucker. 999 is really 666 upside down." - Michelle BachBagger (R)

"Don't be one of those suckers (R) who laps up this Eeeeevil plot by -- pay attention now -- a guy who just happens to be named Cain. Oooooo."

- Michelle BachBagger (R)

[Ganja Ninja]

8. I'm surprised she just doesn't point at him and yell "BLACK!"

:shrug:

[LoZoccolo]

3. Fire Dog Lake: automatic unrecommend n/t

[SpiralHawk]

4. Does this mean you support or oppose the 999-666 plot?

[LoZoccolo]

9. I haven't even bothered to read about the "999" plan. n/t

[KamaAina]

5. I asked a German economist friend of mine whether it would work

She said "Nein! Nein! Nein!" :P

[RayTy]

6. this is scary

this is what realy terrifies me about cain is that he's serious about this and there are some people sadly getting swept up in this becuase it will make the rich pay 'their fair share' sickening how this kind of talk preys on people!!!!!!!!!

[Donnachaidh]

7. welcome to du! n/t

[RayTy]

10. thank you!!!!!

i've been on here just getting settled after moving over the summer so now i can really post some!

[Historic NY]

11. 999 Nonsence...my sales tax would climb to 18 3/4 % on everything..

add that into the sales tax on fuel and other things he in NY and I'd have to flee.