9-9-9
Herman Cain may be a great candidate, and very well could be the Republican nominee in 2012-but he might want to rethink the third 9:
As Tennesseans are aware, we are fortunate in this State not to be burdened with a State income tax, and that means that the State is dependent on sales tax revenue for its daily operation, and many counties and localities throughout Tennessee are at least partly dependent on sales tax revenue to keep their books in balance. In Jefferson County, where this writer lives, that means that we pay a combined sales tax rate of 8.75% on non-food items, and-thanks to a Republican effort to lower the grocery tax at the State level-7.25% on our grocery bills. A tax chart from the Tennessee Department of Revenue gives the reader a very good idea of what we pay in combined sales taxes, and it drives up the cost of goods and services quite a bit, though it is worth it to avoid an income tax. However, the Cain 9-9-9 plan would cause the combined 8.75% tax rate in Jefferson and many other Tennessee counties to double to 17.75%, since we would have to add the new federal 9% sales tax to the government's take of our bills for goods or services. The 9-9-9 plan would cause the sales taxes that most East Tennesseans pay to increase anywhere from 100% to 125%-something that Tennessee Republicans would, in recent times at least, call an act of tyranny.
Labels: Conservatism, Economy, Federal politics, Local politics, Presidential Election, Tennessee politics
posted by Deacon David Oatney @ 3:44 PM
4 Comments:
You are Absolutely correct on this one David.
David, Could you please post this on information regarding Cain's 999 on the Jefferson Co GOP site.
Thanks
David -
I can only speak for my household, because this is a case-by-case analysis that depends on income and spending habits, but Cain's 9-9-9 plan would actually lower our tax burden.
I personally like the plan. I might like a flat tax even better, but Cain's plan is certainly more equitable than even that.
Cheers,
Rob
All that is predicated on the 9% staying 9%. And the payroll tax going away.
It will never happen.
The federal reserve's first income tax was 1% on those making over $450,000 (adjusted for inflation - the federal reserve's other tax). Within 5 years, it was raised 600% and every dollar from zero up was being taxed - not just the wealthiest. If Cain is going to continue to be a Fake Tea Party pretender, he needs to address government spending, not just more ways to tax to pay for it.
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