Wednesday, October 19, 2011

Cain's 999 plan won't work

I understand that the whole point of the 999 plan of Cain is supposed to be 1 point less than the 10% that many people tithe to their churches of their incomes. However, the flaw to this idea is what happens to the middle class and the poor. Even though the upper middle class and rich would benefit incredibly from this plan, poor people simply wouldn't be able to afford ANYTHING NEW. Because he doesn't plan to tax things that are used. So poorer people could buy used cars, used clothes, used anything and not be hit with this 9% federal tax. I'm not sure if this also applies to used houses or not. However, what this would do to the economy is that it would greatly reduce the amount of anything new made in the U.S. or abroad that is bought in the U.S. So this would hurt manufacturers at home and abroad  and producers of everything except new staple foods which would also be taxed at 9%. So everyone would be hurt by the added 9% tax on food. So, in the end the ONLY people helped by this 9% federal tax would be the fairly rich and the very rich who would pay less income tax of now only 9% instead of 25% to 38% taxes on their incomes.

So once again, Sponsored by the Billionaire Koch brothers, Cain champions "of the rich, by the rich and for the rich!"

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