Earlier I posted “Why
Cain is the Wrong Choice based on his 999 plan” @
There I posted that 999 “is a business
scheme that can loop-hole most all businesses by moving all profits into
expenses, and profit-sharing: result, potential 0% income to the US Government.
In other words, it is "NET Profits". …It is sheer incompetence, or intentionally moving the burden onto the individual.”
In other words, it is "NET Profits". …It is sheer incompetence, or intentionally moving the burden onto the individual.”
Of the “Empowerment Zones" Cain proposes, I
stated:
Most Americans
presume that this will go to inner city areas or those in NEED of assistance
for a hand up. The Language clearly invites abuse of racial or wealth
preferences. It can be abused as a "blacks only" plan to the
exclusion of Whites, Hispanic, and Asiatics, etc. It can be used to
create only those Country Club Zones of the Uber-wealthy as paying NO taxes as
long as they hold any kind of an income revenue job, from a CEO position to a
seat on a board somewhere, or even 30 seats on 30 Boards of 30 different
Companies, to a lowly city or town council job that pays even $50 a month.
Additional deductions can mean just about ANYTHING he wants it to
mean, NOT what we might naively presume. It is too ripe for
abuse by a manipulation of what we might presume, and what HE may actually
intend as an opposite of our innocence.
At World Net Daily, his own typewritten article
with his own responses
9 responses to 9 false attacks on 9-9-9 http://www.wnd.com/index.php?fa=PAGE.view&pageId=356825#ixzz1b1t9lRyr
are evasive and dismissive to the very question
of the poor.
Claim No. 1: The 9 percent sales tax…hurts the
poor, many of whom pay no federal income taxes now.
Cain’s Answer: “…the best way to help the poor
is by spurring economic growth, which the current tax code will never do….”
Claim No. 2: Creating a
new tax is merely setting the stage for higher rates on all taxes, as
untrustworthy politicians will surely raise them.
Cain’s Answer:
“If you don't want the rates raised, don't elect politicians who will
raise them.”
Claim No. 3: The plan
redistributes wealth from the poor to the rich.
Cain’s Answer: “It does no such thing. It is
fair and neutral, taxing everything once and nothing twice.”
{My response: See the wheat
example below, the products are both "in fact" and "by claim" multiple-taxed at
different phases of production more than several times. Had I used a computer or an appliance or furniture
or clothing, every example of a new item of base material processed and
developed and marketed is taxed more than twice, making Cain’s response an unequivocal
lie.}
Herman Cain interviewed by NBC's David Gregory
In the first several minutes, the discussion is on the 9-9-9 plan. Cain claims the price of goods will be cheaper because it eliminates invisible taxes. The sales tax applies to "new goods, not used goods" says Cain. He also flat out lies, does not tell the truth, fabricates, use any synonym you want to -- that the elderly will not pay more in taxes. Gee, Herman...what the hell do you call the 9% National sales tax? What a bold face liar the man is on this very statement. Cain attempts to redefine State taxes as only State Income Taxes, and then not only comments that these taxes will not go away, but to dare talk about State Sales Taxes as State Taxes are as if we are the ones guilty of insidiously "muddying the waters". Excuse me, but THAT shoe is on YOUR foot, Herman.
Yeah. What's more, is that Herman acts as if the State Sales Tax doesn't really exist except as a personal slander. Is he kidding? Nope. So still, he insist that seniors (and the poor) won't pay more taxes or increased costs?
Yeah. What's more, is that Herman acts as if the State Sales Tax doesn't really exist except as a personal slander. Is he kidding? Nope. So still, he insist that seniors (and the poor) won't pay more taxes or increased costs?
Let's look at it: 9% national sales tax on "new goods".
The farmer sells a pound of wheat for say a hypothetical of $1.00
$1.00 plus 9% is $1.09 on the hypothetical pound of wheat.
At this price, it can be milled and processed and shipped and sold at the grocery store at a price of
1.00 + .125 + .20 + .30 + .175 + .16 + 50% = $2.94 marked up 5 cents to the price of $2.99
By contrast, the Cain 9-9-9 plan, WITHOUT factoring other cost increases that will automatically hyper-inflate the cost of goods, the same will now cost
1.09 + .15 + .22 + .33 + .20 + .16 + 50% to $3.23 + 6 cents price adjusted up to $3.29 + 9% National tax (+ 9% State Tax) to $3.89.
The Cain plan therefore will automatically increase food an average of 30% from the moment of implementation.
In detail by the hypothetical of $1.00 a pound wheat as sold by the farmer.
The delivery man to the factory, whether an individual or independent contractor must pay taxes on the goods he ships. So he transports say 40,000 lbs of wheat for a cost of $5,000, or a total of 12.5 cents per pound. He now must add an additional sales tax of 9% to make up for the tax he passes onto his customer, so he raises the price of shipment to 15 cents per pound to take care of both the tax and round up for price adjustment. The pound of wheat now costs a total of $1.24 cost for just arriving to the factory.
The factory mills the wheat and processes it. The cost is say 20 cents per pound to mill it, plus 9% which will be rounded up to the next penny at 2 cents more for tax, and the pound of wheat now costs $1.46 under Cain's 9-9-9 plan.
The delivery company now ships the wheat to another factory to be reprocessed and mixed into a final product. This costs generally about another 20 cents per pound, plus 10 cents for packaging. Again, the 9-9-9 plan will tax this by 9%, so the factory rounds up to the next penny 3 cents for the tax for an additional amount of 33 cents per pound. The pound of wheat now costs $1.79 (say a Grocery Company generic shredded wheat cereal) under the Cain 9-9-9 plan.
The delivery company now ships the product to the regional or local Distribution warehouse at a cost of 17.5 cents per pound Union wages, and must also calculate the increase into the cost of purchase and delivery. So we round up the cost to an even 20 cents because that is what businesses will do. Your pound of wheat now costs $1.99 under the Cain 9-9-9 plan.
The Distribution center ships the finished product to the stores at cost. Because of the shorter distances involved, we will round the cost down to 16 cents per pound. There are no taxes on these goods as they have been paid at purchase. Your pound of wheat now costs $2.15 a pound.
At the grocery store the average mark up cannot be allowed to drop below 32.5%. Generally the markup must be between 40%-70%. If these were pharmaceuticals, the average markup begins at 400% and is often found in the 800% to 1200% range. But for the pound of wheat, let us be practical and place it at a moderate 50% markup or $1.075 per pound. The main office will round up the price another six and a half cents to reflect a final cost of 3.29 a pound. Under the Cain 9-9-9 plan, you will have no choice but to pay a 9% national sales tax on your food. This will be calculated at the register as 30 cents more. Problem is, once the Federal Government taxes at 9% on food, the States will change their laws and demand an equal tax, or another 30 cents charge. Your pound of Generic Grocery Company 100% shredded wheat cereal now costs you an ever after amount of $3.89 a pound.
So here, the average senior citizen on Social Security, Herman, pays an additional 30% or more on their basic food bill thanks to your 9-9-9 or upside down as 6-6-6 plan.
And this does not even put into consideration that the working poor and Low Class who refuse to go on Food Stamps or Government Assistance, and who will be faced with a new monthly additional average bill of $200 per month in new
non-recoverable Income taxes upon their paychecks as money that will be stripped before they
ever get paid.
My question to Cain is, when the hell did State sales taxes cease to be "real taxes"? Only when it is referred to under your "9-9-9 plan"? Hypocrite! If the States all ceased the State sales taxes on all goods they apply to, how much in taxes will be taken away from the State Treasuries Mr. Cain? Enough to bankrupt just about every state in the Union in the first year, and the remainder in the second if MORE TAXES are raised elsewhere. So yes, we would have to call them taxes.
Apples and Oranges?
At the Las Vegas Debate on October 18, 2011,
Herman Cain continuously made the comparison of State Sales Taxes and his National Sales tax to "apples and oranges." The comment comes at about 9:20 ff. on the above video. Cain soon after states: "I invite every family to do your own calculations with that arithmetic." So says Herman Cain from 11:36-11:40 in the above video.
Calculations Result: (Buzzer). Cain's 999 is dishonestly presented by Cain in Media interviews and in debates. 999 oppresses the poor, and hyper-inflates prices on new goods -- especially as a double, triple, quadruple (etc.) tax on the same core product (such as wheat that is processed into a final product as exampled above, even were it bread and not cereal as I example with).
999 suppresses and abuses the lower classes, and punishes every non-owner restaurant level employee in Godfather's Pizza (the common folk and peons) as well as the rest of society, who he views as if non-citizens -- apparently -- if they are not at least upper middle class or above. In other words, Cain is arrogantly judging who he would call a US Citizen and who he would help, and looks down his nose upon the rest of US society earning less than $50,000 per year as if you are astro-turf to be stepped on. Excuse me, we don't need a black Nancy Pelosi Republican nor a Republican Natural Born American Citizen version of Obama.
At the October 18, 2011 debate, Cain said of 9-9-9, that
“It [999] does not
raise taxes on those who are making the least.”
In 1986, Ronald Reagan exempted the poor below the poverty line from the Federal Income Tax. Herman Cain wants to repeal that and tax every one of them at 9%.
1 person
in poverty making $10,830 a year is taxed at 9% now owes $974.70
A 1 or 2 person
household earning only $14,570 a year taxed @ 9% now owes $1311.30
A 1 or 2 or 3 person household earning only $18,310 a year taxed @ 9% now owes $1647.9
A 1 or 2 or 3 or 4 person household earning only $22,050 a year taxed @ 9% now owes $1984.50
So Herman,
exactly how are you going to make them pay?
Take their rent money and make them live on the street?
Send them to forced labor camps for 2-8 weeks
to work it off at the federal minimum wage?
What Herman? What Herman Barack
Hussein Obama Cain… (if you were President and had your 999 plan pass) what
will you do to the poor when they can NOT pay?
WHAT!!!?
But oh, it's only apples and oranges to you. But have you ever bothered to compare the two?
A couple years ago, I did a humorous comparative between the two items of "apples and oranges".
Perhaps Herman should read it and gain a bit more powers of deductive reasoning, since he is either incapable or unwilling to use the same.
Apples and Oranges?
Time to humorously look at the old cliche.
1) Apples and Oranges both grow on deciduous trees.
2) Apples and Oranges are both called "fruit".
3) Apples and Oranges can both be picked, or fall to the ground from respective, even equal heights.
4) Apples and Oranges both have skins.
5) Apples and Oranges have pulp, juice, seeds within.
6) Apples and Oranges can both be made into a juice form for enjoyment, as well as being edible in their ripened natural states.
7) Apples and Oranges both offer beneficial nutrients and sustenance for the human body.
8) Depending on when they are picked, (and other factors), Apples and Oranges can both be sweet or tart in flavor.
Gee...apples
and oranges sure sound alot alike to me. Maybe people should now say
that something is like comparing oranges and rutabagas...after all,
whoever heard of someone enjoying a cold glass of yellow turnip juice?
Yuck.
That Apples and Oranges analysis was so fun, it was almost as fun as seeing and hearing Jane Wiedlin (from the Go-Go's) swimming with the dolphins in the 1980s classic "Rush Hour." (To each his own, I guess). Peace.
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