So I've had a chance to check out Herman Cain's tax proposals. I must admit I'm really disappointed. I thought Cain would be the best option we had, but his tax proposal shows a huge lack of insight. Most people look at this and think that this is a great proposal because it's a flat 9% tax with no deductions. That's fine for most wage earners, but what about the self employed? What most people don't realize is the complexity of the tax code is not based on its rates, but rather how you compute the amount of income that is taxable. So, to Herman I would pose the question, you are taxing me on 9% of what? If my business grosses $1,000,000 and I can't take off the expenses for my employees, rent, benefits for my employees, then I could be paying $90,000 in tax even though I only made a $20,000 profit. It doesn't make a lot of sense. If I'm currently in a 35% tax bracket then I would love Herman's 9% income tax. Man, I'll take a 26% cut in taxes any day. Oh, but did you notice? His tax isn't a flat tax either. You would be able to deduct contributions and, oh yeah, if you live in an impoverished area, you wouldn't pay the 9% either. Just think what else would get changed before this thing ever got in place. His national sales tax of 9% is another beauty. If any of you have ever dealt with sales tax you know how quirky it is. If I buy Apirin for my dog, it's taxable, but if I tell the pharmacist, it's for me, then it's not taxable. If I'm a non-profit organization, then I don't pay sales tax. I really thought that Cain was a guy we could wrap our arms around and give him a chance to turn this mess around, but I was wrong. His proposals show an incredible lack of sense about small business and how business has to operate to succeed. Too bad because he got my hopes up and now I'm back trying to find a candidate that makes my day. I guess I'm just suffering from electile dysfunction.
I think the pharmacist should tell you aspirin can be dangerous for dogs... Good one...lol Back to Romney?
Yep Brewster, I guess I'm back to Romney. Not that I have anything against the guy, but I just question whether or not he can beat Obama more than anything. I like Cain and I like the idea of a businessman in there rather than just another career politician, but his tax plan doesn't make any sense. To me his tax plan is one that sounds good on the surface, but the reality is that it doesn't work. Also I don't think I want to let Congress get their paws on a new tax that can be raised at a pure whim. Our sales tax here in our county was supposed to be a temporary levy of 2% when it was instituted some 50 years ago. We're just under 9% now and headed up at some future time.
Yeah, income tax was a "temporary war measure", too. At least here in Canada. The problem I would have with a "business man" is that the learning curve would be huge. Politics is a very different world. Both domestic and abroad. Things have changed so much. There was a time when I was discouraged by our politicians in Canada. I used to joke that I would be happy getting the loser of your presidential elections. These days I don't think I would want the winner... Where the heck are all the "good ones"?
The way it looks to me Cain's tax proposals would not produce nearly enough revenue and would be a boon to the very rich: adding a 9% Federal Sales Tax to that already charged by the states would devastate those earning the median US income or less
I would point out that Canada has had the federal GST (Goods and Services Tax) for some time now, on top of the provincial sales tax which every province but Alberta has. People complain and grumble but it didn't kill our economy. I think a lot of countries have similar taxes in place. Everyone is trying to deal with the debt they racked up in the 80's and after. I have also heard that the 9-9-9 tax would also be hardest on the poor and middle classes.
the reality is we can all find something wrong with any politician out there as they all pretty much suck. In that we are all pretty much in full agreement that cain is not a politician is reason enough for me to support him as politicians have put us in the mess we are in today!!!! im ready for change - a real change - a dramatic change - not some penny ante casual token change its time!!!! that cain is at least making an effort to clean up the hideous socialistic mess of a bureaucracy which we simply call the IRS is honrable and courageous its not like he can fuck things up any worse - is it ? i mean really electing another politician to put yet another cheap ass band aid on a triple by pass heart surgery is not the solution - its past time for a total overhaul and while his plan certainly has some limitations - the plan in principle is far more sound than most others i have seen arguments can be easily made on either side of the flat/tax fair/tax issue....... numerous emerging countries have developed flat tax/fair tax systems that work very well (surprisingly enough our own government actually encouraged this) will it be harder on poor people in this country - ummmmmmmmmmm yes - because NOW under cains plan they too will actually have to pay taxes what a concept !!!! a concept i certainly will support
Rob, like you I find Cain to be a breath of fresh air because he isn't a lifetime politician. My main problem with him is that his "signature" item is so full of wholes that it just boggles the mind. I agree with you that the tax code is complex beyond hope. The problem is the complexity of the code is how you get to the number called taxable income. Not everyone has just wages as income. The complexity of those who own rental properties, have their own businesses, or are heavily invested in the stock market or partnerships, is the main complexity of the tax laws. Whether there are three rates or thirty rates is almost irrelevant to the tax laws. The problem is what is taxable. Cain's proposal doesn't address that and is, in fact, little more than political rhetoric meant to get votes without regard for the consequences. That little mistake puts him in the same ball park with all the other politicos in my book. That is really sad as I was looking at him as the Republican White Knight, so to speak.
ed ed ed you do crack me up - i had no idea accountants could have a sense of humor btw - i see where your buddy joe is headed back to my little mecca in san jose del cabo rob
Rob, we do have a sense of humor, but we rarely show it. Otherwise the IRS will no longer take us seriously. Joe is headed back to Cabo again? Damn, one of these days the three of us have got to get together and share a libation. Maybe we can even get Jamie in there with us.
