9-9-9 Tax Plan
October 12, 2011 by staff
At first glance, is the simplest plan of tax you can imagine. A nine percent tax on personal income. A tax of nine percent in spending. A nine percent tax on corporate income. There are no exceptions. How easy is that? Believe it. As in, not entirely credible.
First, consider the logistics. Current income and corporate tax code and has a billion exceptions. Cain is his will that have none. Not for children. No earned income. Not for homes. Medical loss, catastrophic fires at home? It’s not that I see. Thinking about donating to charity or spending money that accumulates in research and development in your company? No tax credit for you. Imagine a consumption tax without similar exceptions is equally amazing. In Europe, many VAT only cover a third of purchases due to so many exceptions have been carved.
And do not be fooled by the simple three-digit marketing. Bruce Bartlett writes Economix more in the tax could be almost as much of a headache than the code:
How would the benefits are not clear, because the purchases of such things as health insurance can be a purchase of another company and remain deductible. If so, what prevents a company from paying its employees by leasing their cars and houses for them and even buy food and clothing? To reduce your taxable income.
The abolition of any salary deduction can raise the cost of hiring workers, even with the elimination of the employer’s payroll taxes. And since the deduction of dividends do not seem related to profitability, companies can borrow to pay dividends, and still get the deduction. Even a novice tax lawyer could easily make a lodging tax that.
Second, consider the taxpayers. “The conclusion is that people in lower paid much unless you have something to protect them, and people at the top are paid much less unless there is something to stop them,” Roberton Williams of the Tax Policy Center he said. Consider the 18 percent of households that pay no payroll and federal income tax (because of low wages and tax credits). Its tax burden immediately go from zero to 18 percent. Consider now the highest percentile that makes a disproportionate share of their income through capital gains. Its tax burden could easily fall into “more than half,” said Williams, adding: “. This is largely a regressive plan”
Finally, consider the economy. It is true that the corporate tax reduction and the elimination of payroll taxes and capital gains will reduce the cost of hiring workers and making money in the U.S. case Incentives, and is in the national interest to have a simpler tax code with lower marginal rates. (A suggestion to the left of center: Reform of the codes of personal income and corporate tax rates and lowering the stage at a carbon tax to help offset the payroll tax), but the plan 9 – 9-9 pays for this increased efficiency by increasing taxes on the lower third, the elimination of current Social Security money directly and convert our redistributive tax code in his head, while introducing a new tax for keep the government funded.
In addition, Cain cuts tax plan for the rich, increases the rates on the poor, his hands a gimme to large corporations, and manages to create a tax that Republicans do not want. Sorry Michele Bachmann, but is not necessary to turn this upside down to see that evil is a stupid idea.
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