Herman Cain has introduced a new plan for taxes if he's nominated then elected as President in 2012; the 9-9-9 plan. This means simply "a 9 percent tax on all consumer purchases, a 9 percent “business” tax and a 9 percent income tax".
Mr. Cain insists that since the proposed legislation is so simple, it is easier for the public to understand and thus be in support of it. But for most Americans, this plan would raise taxes, taxes they can't afford. It cuts the rich's taxes, but doubles the income tax of the poor now. It adds a national income tax which would be tacked on to current state sales taxes. For instance in Virginia, the total of a $25 dollar purchase would be two dollars more with the 9-9-9 plan than with current taxes. While that doesn't sound like much, it adds up. Another odd point would be what some have dubbed as "the phantom tax". The "phantom tax" wouldn't tax used cars or old construction, but if you buy new, you're paying a 9 percent tax on that car- which adds up!
While this is only a temporary, "stepping-stone" plan, it would give no tax breaks to the bulk of the American people or give the Federal government more money.
No comments:
Post a Comment