A summary of Mr. Cain's 999 tax plan from his website :
• Removes all payroll taxes and unites all tax payers
• Provides the least incentive to evade taxes and the fewest
opportunities to do so
• Lifts a $430 billion dead-weight burden on the economy
due to compliance, enforcement, collection, etc…
• Is fair, simple, efficient, neutral, and transparent
• Ends nearly all deductions and special interest favors
• Features zero tax on capital gains and repatriated profits
• Exports leave our shores without the Business Tax or the Sales
Tax embedded in their cost, making them world class competitive.
Imports are subject to the same taxation as domestically
produced goods, leveling the playing field.
• Lowest marginal rates on production
• Kills the Death Tax
• Allows immediate expensing of business investments
• Eliminates double taxation of dividends
• Increases capital formation which aids capital availability
for small businesses
• Increased capital per worker drives productivity and wage growth
• Features a platform to launch properly structured Empowerment
Zones to renew our inner cities
• The pro-growth, pro-job, pro-export economic policies of
the 9-9-9 Plan equals a strong dollar policy
A few questions already noted by those here and what the mainstream media is failing to ask as there is little if any detail .
1. What counts as " gross income " Will Social Security benefits be taxable ? What about employer contributions to health insurance and retirement plans ?
2. What goods and services will be subject to the 9% sales tax ? Groceries ? Medical care ? Rent/Housing ? Do you pay for a new house but not a " used " one ?
3. Will you " force " employers to give all employees an increase in pay of 7.65% to cover their half of payroll taxes or will the employers just pocket the difference ?
4. Again , will you " force " business to cut prices to make up for the reduced level of taxation ?
So I took Herm's suggestion and did the math .
What we pay based on standard deductions now ( standard exemption and dependent exemptions + the child tax credit where applicable ) + 1/2 payroll taxes and under just the 9% flat tax . No calculation of EIC or other more exotic credits . BtW , any - ( subtraction sign ) means you'lll be paying MORE .
You make $20,000/year.
999 : $1,800
Individual filing : payroll tax $1468
income tax 1175.
Total $2643
savings under 999 : $843
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Head of Household w/ one dependent
payroll taxes $1468
income taxes $433
total less $1000 child tax credit $901
saving under 999 -( negative)$899
<blockquote>You make $30,000
999 $2700
Individual payroll taxes $2202
income taxes $2675
total $4877
savings under 999 $2177
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Head of Houshold payroll $2202
income $1551
Total less child tax credit $2753
savings under 999 $53
Married filing jointly with 1 child payroll $2202
income $768
total with tax credit $1970
savings under 999 -$730
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Married filing jointly w/ 2 kids payroll $2202
income $403
Total less $2000 child tax credit $605 ( note , wouldn't qualify for full credit , easier to use full amount )
999 savings -$2095
You make $40,000
999 $3600
individual payroll $2825
income $4183
Total $7008
savings under 999 $3408
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Head of Household w/ 1 kid
payroll $2825
income $3051
Total less child tax credit $4876
difference under 999 $1276
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Married filing jointly w/ 1 kid
payroll $2825
income $1814
Total less tax credit $3639
difference under 999 $39
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Married filing jointly with 2 kids
payroll $2825
income $1403
Total less tax credits $2228
savings under 999 -$1372
You make $50,000
999 $4500
Individual payroll $3532
Income $6350
Total $9882
savings under 999 $5382
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Head of Household w/ 1 kid
Payroll $3532
income $4731
Total less tax credit $7263
savings under 999 $2763
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Married filing jointly w/ 1 kid
payroll $3532
income $2766
Total less tax credit $5298
Savings under 999 $798
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Marreid filing jointly w/ 2kids
payroll $3532
income $2766 ( mistake )
Total after tax credit $4298
savings under 999 -$202
You make $75,000
999 $6750
Individual payroll $5298
income $12,600
Total $17,898
savings under 999 $11,148
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Married filing jointly w/ 1 kid
payroll $5298
income $7056
Total less tax credit $11,354
savings under 999 $4604
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Married filing jointly w/ 2 kids
payroll $5296
Income $6516
total after tax credit $9814
savings under 999 $3064
You make $100,000
999 $9000
Individual payroll $7064
total $ 19,098
total $26,132
difference under 999 $17,132
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Married filing jointly w/ 1 kid
payroll $7064
income $11781
total less child tax credit $17,845
savings under 999 $8845
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Married filing jointly w/ 2 kids
payroll $7064
income $10,869
total less credit $15,933
savings under 999 $6933
you make $250,000
999 $22,500
Individual payroll $18,357
income $64,531
total $82,888
savings under 999 $60,388
you make $500,000
999 $45,000
Individual payroll $25,697
income $149,371
total $174,978
savings under 999 $129,978
Yuo make $1,000,000
999 $90,000
Individual payroll $40,107
income $327,643
Total $367,750
savings under 999 4277,750
BTW , with no tax on capital gains , it's unlikely we'd see the top 5% pay a thing .
Now add in the regressive 9% sales tax and see who'd be paying far more in taxes then now . Pretty funny coming from the Taxed Enough Already party , massive tax cuts for the top 10% , used food for the rest of us . So much for the flat tax .