The “Patriotic” Thing To Do

Posted Wednesday, October 12, 2011, at 8:31 AM
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  • Oh boy! good points. Maybe we should take Obama up on the "shovel ready jobs" and clean up Washington, if you know what I mean.

    I think that this Occupy thing is going to morph into riots, we already have litter, drugs other other garbage related issues.

    I certainly hope it won't come to that, but usually what happens in Europe, comes across the pond eventually.

    -- Posted by KH Gal on Wed, Oct 12, 2011, at 9:28 AM
  • OK. I'll readily admit that i'm not an economist or an accountant, so my math may be off, but i fail to see how Cains 9-9-9 tax plan will result in a tax savings. If i'm understanding the plan correctly it calls for replacing all current taxes with 9% tax on corporate income; 9% personal tax rate, and a 9% federal sales tax.

    There's also Cains strong support of a "Fair Tax", A 23% national sales tax on all new goods and services. Is this "Fair Tax" a part of the 9-9-9 plan or a separate entity altogether?

    If it's in addition to his 9-9-9 plan, then the total federal sales tax burden would jump to 32% on everything you buy (23% fair tax + 9% federal sales tax). Now add to that a 6% state sales tax in Idaho(I don't think that the federal government can constitutionally tell a state that they CAN NOT charge a sales tax) and you're now up to paying a 38% tax on everything you buy PLUS still paying 9% federal income tax and 8% Idaho state tax.

    Now if you completely remove the 23% fair tax from the equation the 9-9-9 plan still calls for a national sales tax of 9% in addition to the 6% sales tax that Idaho charges. Effectively charging you 15% on anything you purchase PLUS the 9% income tax and a 8% State income tax.

    The Median Elmore county income is $35,256, which places it in the 15% federal tax bracket. Add to that your state tax (8%) and state sales tax (6%) and you're paying 23% in income tax(state and federal) and 6% in sales tax.

    Under 9-9-9 you would pay 17% in income tax(9% federal + 8% state) BUT 15% in sales taxes (9% federal + 6% state). Where are the savings?

    -- Posted by Amuzeme on Thu, Oct 13, 2011, at 1:06 AM
  • Ok. I can see your points on this, and I agree that what we have currently isn't working. Way too complicated. But i'm not quite ready to just concede that Cains plan is going to be any better just because he's a successful businessman. Successful businessmen have made bad decisions and mistakes before. I however can see some merit in your statement that this just might keep people from spending beyond their means.

    If you look at the current federal income tax brackets of 10%, 15%, 25%, 28%, 33% and 35% Cains plan seems to hit those in the lower brackets the hardest.

    If you're currently paying 10% federal income tax, Cains plan will reduce it to 9%. At the same time though it ADDS an additional 9% in federal sales tax. A net tax INCREASE of 8%. The 15% bracket sees a net INCREASE of 3%. 25% bracket sees a DECREASE of 5%, 28% DECREASES by 10%....and so on. But these increases/decreases only apply to what you actually spend.

    Those in the lower brackets are less likely to spend extravagantly because the increase in sales tax makes it prohibitive. Those in the higher tax brackets will spend MORE because they now have more disposable cash. Theoretically, this makes sense.

    Thanks for your input. This was just the kind of perspective I was looking for when I posed the question. I'm not quite ready to jump on the "Cain Train", but I can hear the whistle.

    -- Posted by Amuzeme on Thu, Oct 13, 2011, at 11:57 AM
  • I think was is the most appealing is that Cain wants to actually toss an archaic system out and make something simpler for everyone to understand.

    I for one, appreciate his straight talk.

    -- Posted by KH Gal on Thu, Oct 13, 2011, at 12:40 PM
  • 1 ST THING....THANKS HOMMER FOR THE INFO.

    GOOD read made sense,I dont think many will complain about reducing the size of gevernment.Most people dont realize how redundant it is.I thinks it can be reduced and most wouldnt even notice it,The poloticians dont want it reduced.jUST REMOVAL OF REDUNDANCY WILL SAVE BILLIONS.

    I dont think people are against cutting,they want to know why???? corporations get to pay O taxes.So therefore they feel they are getting the short end of the stick.NOW realize I AM TALKING ABOUT THOSE OF US WHO DO PAY TAXES.sO THEY DONT SEE CUTTING WITHOUT RAISING REVENUE AS VIABLE TO SOLVE THE SITUATION.in SHORT...... THE WILL OUGHT TO BE THERE TO DO BOTH....NOW.I think the people have the will the poloticians dont.

    -- Posted by lamont on Fri, Oct 14, 2011, at 7:07 PM
  • ZOOK.....REALLY READ WHAT HOMER POSTED.....WHAT YOUR SAYING IS NOT THAT SIMPLE I WISH IT WAS.

    -- Posted by lamont on Fri, Oct 14, 2011, at 8:43 PM
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