Home

So?

Newsflash: tax rates WILL increase. Now, the question is whether to do it equally, fairly, and evenly across the board, or whether to continue the class and generational warfare of the current system.

So you know his personal household income situation better than he does or is he just bad at math?

Paying an equal percentage is one thing, but having to pay a new tax on money the income tax has already been paid on is just wrong.

Dean Clancy, Legislative Counsel for Tea Party organizer Freedomworks, seems like the perfect demographic for Cain�s idea on paper. And he�s even sympathetic to the principles behind it on both moral and economic grounds.

�In an ideal system you would not tax businesses at all and you would tax all individuals at the same low rate with no special interest loopholes,� Clancy told TPM on Wednesday. �If you want to help poor people, do it outside the tax code.�

But he�s not on board with Cain and one reason is because American voters aren�t ready for that kind of change.

�It�s politically always hard to do something that raises taxes for some and lowers for others,� he said. �So the consensus is really for cutting taxes and the only way you can do that is by cutting spending.�

The other issue Clancy and other anti-tax conservatives like Grover Norquist cite is Cain�s reliance on a consumption tax to finance government. Until recently, a national sales tax has been largely a Republican idea: Rick Perry even gave it a shout out in his book. But in recent years, Republicans have decided it�s too close to European countries� Value Added Tax, sparking fears that politicians will use it as a Trojan Horse for socialism.

But if Republicans beyond Cain and Huntsman are unwilling to raise taxes on the bottom half of taxpayers or transition to a consumption tax, their hands are tied. TPM asked both the Romney and Perry campaigns how they�d handle the 47% problem they�ve both derided, but received no response.

My plan here is to simply not buy anything. Leastwise nothing new.

I will gladly pay 9% on seeds and grow pretty much anything needed. Couple of used Rhode Island Reds, a cow and a horse I'm set. A used cow and horse that is!

I don't need to. I know the current income tax code well enough to know that the only way Cain's plan results in lower taxes is if the household income is in the upper two tax brackets where the effective tax rate, with deduction, is over 18%. Anyone with an effective tax rate of less than 18% will see a tax increase under Cain's plan.

Anyone working in their own business where they are organized as a subchapter S corp. will see an additional tax increase because Cain's plan eliminates the tax free pass through such corporations now enjoy. That's most small businesses; that's most job creators in this country. That's why Cain's plan is dumb dumb dumb.

It gets everyone into the game, equally.

Lie-berals, like the San Diego set, HATE that, as it makes it impossible for them to play class/race warfare.

You mean like the capital gains tax or the completely immoral death tax we currently have that goes AWAY under 999?

Cain's plan treats capital gains as ordinary income, so you pay 9% income tax and then 9% sales tax, for a total rate of 18%. That's a 3% tax increase over the current capital gains tax rate of 15%. Didn't you know that?

You do realize that almost no one has less than an 18% tax rate correct?

[and I'm NOT good at figuring taxes , which is why I spent ten years as an indentured servant of the IRS ]