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Under this plan, what happens to the Social Security payments that people have paid in for decades.....and is owed to them?

IRA distributions are taxed as ordinary income.

Roth IRAs are a different creature all together.

I love how folks want to fix the problems this nation has, until it means that everyone has to pay an equal amount to do it. Then, no one wants to.

One advantage to 999 for those of us on Social Security with income from other sources,such as a working wife,is that ALL our income would be taxed at the same rate up front.

In most years,999 would give us a small reduction in our total tax bill.In other years , it would be a wash.The variation in our case is that the wife's income is seasonal and variable.

No Boggy,she ain't pullin' bolls.

That article is another typical BS hit piece. It makes some very broad assumptions by narrowing the focus group right out the gate. Family of four making just UNDER 50k for example. It then goes on to completely disregard the sales tax this fictional family might already be paying and states any sales tax is seen as an increase.

I like cain.

He's the only candidate I believe when I listen to him talk.

Could he push 999 through if he were president? Probably not.

But his intentions speak volumes.

Even if Roth IRA and Social Security income is exempt from Cain's 9% income tax, it will still get hit by Cain's 9% sales tax. A retire couple with 50,000 in social security and Roth IRA income would see at least a $4,500 increase in their federal taxes under Cain's plan.

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.

Another very good point, this has no chance of making it through Congress.

So?

You're assuming that retirees should be exempt from having to shoulder part of the burden to fix this nation?

Why the class warfare?

I assume you'd just rather the younger generations shoulder all the burden now and later, right?

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.

Okay then how about 5-5-5?

That's pretty much it.
Maybe I'm the only one that heard Cain say plainly and clearly that for SOME folks taxes would go up and for SOME folks taxes would go down. I think we all agree our current tax disaster is anything but 'flat'. Anything you do that increasing parity and 'fairness' by definition will have some paying more and some paying less. I honestly don't care if it raises my family's tax burden. As long as we are ALL pulling the wagon, I'm IN! Those wanting a free or reduced fair ride, PULL YOUR OWN WEIGHT!

G-LSU;

Exactly.

I think the masses will reject it because everyone has to pay an equal amount to do it...when everyone hasn't benefitted equally from the system. The view is that nobody generates wealth in isolation from the system in which they do business. Examples, such as Wall Street tycoons who make many tens of millions of dollars per year having benefitted from the system that lots of poor kids have given their lives defending, mean something to the masses. They see the progressive income tax as a means where those who have benefitted the most from the system...a system they didn't create on their own, that others also worked hard to build, and in many instances even gave their lives to defend...pay more percentage wise to support that system.

Under no circumstances would you pay less under Cain's 999 plan unless your wife's income puts you in one of the top two tax brackets under the current system. If so, you're not really middle class. Remember, you'll also be paying an new federal 9% sales tax on top of any state sales tax.

I heard Boehner on Greta last night. She asked him very directly if there was an 'appetite' to 'drastically change our current tax system with anything remotely resembling 999 or any other plan'. He about spun himself into orbit trying to say he favors "flattening and simplifying" the current tax code but wouldn't say what he really meant to say which was "Heck NO there's no appetitie for that Greta! If you do something like 999 and elminate all deductions and exemptions, how in the world are we suppose to buy votes! We've worked for a couple of generations to get our current tax system to be the ultimate vote buying scheme and it works great. Nobody even knows what their affective tax rate is and we can change their rate without them even knowing. Plus we can always threaten to raise taxes on the other/bad guy to buy even more votes. Stop trying to mess up a good thing!"
So yes, Congress will be resistent but if Cain gets elected, it will be in good measure because of this tax overhaul. I realize they have short memories but members of Congress would be wise not to ignore the voting public yet again.

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

Damned shame no one wants to actually believe in the Declaration of Independence, the Federalist Papers, the Constitution, and the Bill of Rights.

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 was wondering if that was the case...thanks for the info!

Even if shifting the tax burden from the upper income to the lower income folks is fair in your book, what about double taxing, do you think that's fair? People saving for their retirement pay the current income tax on the money they put in Roth IRAs, savings bonds, municipal bonds and other investments that the government has promised would be free from federal taxes in the future. Now Cain's 9% sales tax breaks that promises and you don't see anything wrong with that? If your mortgage company increased your principle by 9% after the fact you would be shouting robbery, but if the government does it you're ok with it. What are you, some kind of closet liberal?

I support it. I have heard some don't like the 9% sales tax, believing it will kill large purchases. Maybe, but then just maybe it would change the way people buy things like cars on a whim, because all they know is "what's my monthly payment?".

But that sales tax is the REAL leveling factor. NOBODY skates away from not paying it. You buy a pack of gum, you pay tax. You buy a house, you pay tax. It's everybody's tax, and everybody buys things.

If the Senate doesn't change majority as well as getting rid of Hussein, we're back to square one, almost.