Question: Hello, I've seen a lot of bloggers looking for someone to support in the primaries. They are looking at Mr Cain but are voicing concerns on how the 9-9-9 plan ia going to effect the low & mid income. Is there a income limit where the middle 9 will not effect that group? I'd like to get info out but I also want it to be factual.
Also the third 9- I know it is not applied on used goods. I'm just wondering why un-prepared food & prescription drugs couldn't also be excempt? As buying these two things takes up a larger porportion of the lower incomes money.
Answer: This is a compilation of a number of the most common questions asked about the 9-9-9 Plan. Let's start by looking at the flat 9% personal income tax provision. At face value, one might think this is more costly to low and moderate income folks. What this theory ignores is that, in the 9-9-9 legislation will be the repeal of ALL other taxes. Included in the ALL is the payroll taxes (FICA and FUICA). What we forget is that the Federal government takes these right off the top of our paychecks, and we never file a form to pay them. They are SIGNIFICANTLY more any increase folks would feel at any income level. In fact, folks would end up with money back in their paychecks.
Secondly, as regards the 9% national sales tax, let me quote directly from Herman Cain's Website: "Unlike a state sales tax, which is an add-on tax that increases the price of goods and services, this is a replacement tax. It replaces taxes that are already embedded in selling prices. By replacing higher marginal rates in the production process with lower marginal rates, marginal production costs actually decline, which will lead to prices being the same or lower, not higher." In short, by abolishing what Mr. Cain has so aptly called "the Sneak-a-Taxes" that plague business, the price of goods will be reduced MORE than the 9% folks are being taxed. This would include un-prepared food and prescription medicines (your direct concerns) as well as ALL goods.
I hope this has addressed your concerns. If it has led to further questions, feel free to ask. Thank you for coming here and asking a thoughtful question. We hope to gain your support and loyalty.
The Man and his Candidate
