Math challenged? If companies don't give the employees their contribution to FICA, etc., they'll be able to hire 10% more employees. Even if they hire 5% more, that's more taxpayers. And less ObamaUnemployed.
In Cain's plan, businesses pay 9% on all revenues, not just on profit as they do now. They cannot deduct expenses, such as payroll. Cain apparently doesn't know the difference between revenue and profit. In Cain's plan, businesses can't deduct purchases for items made outside the U.S., such as computers. He was asked whether his plan allows businesses to deduct a Toyota or BMW made in the U.S. (that's where they're made), or a car containing some parts made in another country (that's every American car). He answered loudly with disdain, "I have noooo idea." Cain's plan is a giant tax increase for businesses. This is why Republicans only criticize Democratic plans instead of creating their own in any detail. They're too stupid to have anything except slogans and hot air.
Ok, first you say That certainly sounds like you are saying that the employees would get the full benefit of the FICA tax elimination. Now you are saying the employers would use it to hire more workers. That might be true (although probably not, they'll probably just pocket the difference), but it certainly doesn't help reduce the tax rate paid by the existing workers. barfo
So most small businesses would go out of business. And since the 9% national sales tax is on top of the sales tax consumers already pay, consumers would buy a lot less, driving the remaining businesses out of business. The new sales tax would be on everything, while current sales tax is on only some things. As for Cain making it practically illegal (okay, nondeductible) for businesses to buy goods made in other countries--other countries would retaliate with tariffs on goods made here, further sinking our economy. If you don't understand the above, I'll make it brief for you. Republicans are idiots who will fall for any conservative slogan, such as 9-9-9.
Why would they hire more employees if they wouldn't do so now? If they could make more profit by hiring people, they would now. If they need startup money to hire right now, they'd borrow it from a bank, not wait years for a tax break. A permanent 8.45% saving (employer portion of FICA, Medicare, and FUTA) wouldn't cause them to waste 8.45% in unneeded increased employee cost. The owner would just add a couple of annual Hawaii vacations. When I used to run payrolls, that's what my efficiency allowed the owner to do for many weeks. He left me in charge, making pennies to do his job while he and the family were in Hawaii. Yes, but it would add to, not replace, local sales tax and state income tax.
I hadn't realized that payroll expenses were not deductible, so I went and looked at Cain's website, islewabel.com. And yes, he's providing an incentive to minimize salaries. Payments to another company that provides labor overseas? Deductible. Payments to american employees? Not deductible. Gee, I'll bet that will put america back to work. And this guy is leading in the polls? barfo
See, if stuff like this was researched, then brought up in the debates, I'm sure Cain's stock would decline fairly rapidly. My question is, why is the 9-9-9 not being challenged more often? OTOH, now that Cane has seemingly taken the lead, I'm sure it will be.
Huffington figured out where Cain got the idea!! http://www.huffingtonpost.com/2011/10/13/herman-cain-999-sim-city_n_1008952.html
I just read the article and it's even better than I expected. So for the enjoyment of the click-challenged, here it is. ----------------- WASHINGTON -- In Herman Cain's America, the tax code would be very, very simple: The corporate income tax rate would be 9 percent, the personal income tax rate would be 9 percent and the national sales tax rate would be 9 percent. But there's already a 999 plan out there, in a land called SimCity. Long before Cain was running for president and getting attention for his 999 plan, the residents of SimCity 4 -- which was released in 2003 -- were living under a system where the default tax rate was 9 percent for commercial taxes, 9 percent for industrial taxes and 9 percent for residential taxes. (That is, of course, if you didn't use the cheat codes to get unlimited money and avoid taxes altogether.) A screenshot from the game's default settings: There has been all sorts of speculation about where Cain came up with the idea for his catchy plan -- Unnamed economic advisers? A clever marketing promotion pulled from the pizza industry? -- but beyond a few hardcore gamers in the comments sections of blogs, few have looked to SimCity, the land where there's a "God mode." Kip Katsarelis, a senior producer for Maxis, the company that created the SimCity series, was excited that politicians may be looking to video games for ideas. "We encourage politicians to continue to look to innovative games like SimCity for inspiration for social and economic change," said Katsarelis. "While we at Maxis and Electronic Arts do not endorse any political candidates or their platforms, it's interesting to see GOP candidate Herman Cain propose a simplified tax system like one we designed for the video game SimCity 4." Adopting such a simple tax structure, Katsarelis said, would allow fantasy political leaders to focus their energy on infrastructure and national security. "Our game design team thought that an easy to understand taxation system would allow players to focus on building their cities and have fun thwarting giant lizard attacks, rather than be buried by overly complex financial systems." When asked about similarities between Cain's plan and SimCity's default tax rates, Cain campaign spokesman JD Gordon replied, "Well, we all like 9-9-9." Rich Lowrie, the Ohio Wells Fargo employee who is the brains behind Cain's plan, did not return a request for comment regarding whether he is a fan of SimCity and looked to the game for inspiration. A receptionist at Lowrie's Wells Fargo office said she doubted his idea came from SimCity. "Probably not," she told The Huffington Post. "I don't think he's much of a game person." Presumably, under the Cain plan, disasters would be turned off.
This board is funny tonight! Two people spelling it hair-brained is like calling each other morans! I can't decide whether this reminds me of Laurel & Hardy or the Three Stooges. I'll give this tough decision a lot more thought.
I slew Abel dot com. There is no website according to Google. But my search did find opinions that Cain is the Antichrist and that his plan will slay the American taxpayer. This cartoonish candidate takes credit for inventing a plan donated to him by a Wells Fargo bank employee, who stole it from SimCity programmers, who had created a humorous simplistic tax plan for kids. Cain answers, "I have noooo idea" when asked questions about the plan details. Republican gimmicks. Smoke and mirrors. In SimCity, you can turn off disasters so that you never have any.
