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Rough Math of the 999 plan

By: apocomilitiaman (Diary)  |  October 12th, 2011 at 01:10 PM  | 

RESIZE: AAA

Avg Wage FICA avg Income Tax Necessities Nat Sales Tax State Tax GA Leftover
40,711.61
 2524.12 5455.35574 26840.35 0 2442.6966 3,449.09
             
vs 999            
40,711.61
 0 3664.0449 26840.35 2415.6315 2442.6966 5,348.89
             
             
Avg Wage            
100000 6200 13400 48000 0 6000 26,400.00
             
vs 999            
100000 0 9000 48000 4320 6000 32,680.00
             
Avg Wage            
250000 15500 33500 48000 0 15000 138,000.00
             
vs 999            
250000 0 22500 48000 4320 15000 160,180.00
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COMMENTS

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  • apocomilitiaman

    You get a individual bashing 999 and and he gets over a 100 comments???

    What gives????

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  • apocomilitiaman

    Sure we can have FEAR about what a future Congress will do1

    Sure we can nitpick and debate implementation!

    But look at the numbers and figure out where you would be given your income and current federal, FICA, and state tax rates!

  • badspotteddog

    I am seeing that mis information about 999, which is a prelude to the fair tax, is the biggest detriment.

    I have been passing around these 2 URLs

    http://www.hermancain.com/999plan
    AND
    http://www.fairtax.org/site/PageServer

    If people will pay attention and learn, instead of listening to the mainstream media, we will get out of this mess.

  • dvdmsr

    revenue does not change from someone earning $100,000 and someone earning $250,000, or that the introduction of a 9% sales tax is estimated to have no effect on consumption habits? Are we also to assume that ONLY the consumption of necessities will be taxed with the 9% sales tax, or that the consumption of non-necessities will drop to zero under 9-9-9? Hey, do you smell tuna?

  • apocomilitiaman

    If an individual has more discretionary income (left over) then they will do great things with their money.

    1. Pay down debt

    2. Invest it

    3. Buy new things

    4. Boost the economy and create more jobs.

  • apocomilitiaman

    Again worry about a future Congress and their actions causing one to stay still and DO NOTHING is not a plan.

    Out of all the plans available to date this plan from Herman Cain is the only one that the American people can easily understand, remember, and more importantly rally behind.

  • dvdmsr

    would calculate the effect of existing tax brackets, the standard deduction and the personal exemption to bring the average income tax for a single person earning $40,711 per year closer to $4,256 or $3,865 depending on whether $40,711 is his gross adjusted income or not.

  • Change Jar Conservative

    is have everyone paying for part of the government including illegals and people who don’t pay income tax (drug dealers, people paid in cash, etc).

    The downside is Obama’s ability to demagogue it.

    As I’ve mentioned elsewhere, Cain’s team needs to come up with language that would make the part about the three portions floating at the same rate as specifically unseverable so that the 9% can’t be left in place and the others raised dramatically.

  • apocomilitiaman

    The federal tax rate is calculated as the average effective tax rate (which includes all deductions) of 13.4%

  • apocomilitiaman

    Assuming ones necessities are a fixed componet of ones budget with on a slight variance for higher incomes based on bigger mortgages, car payments, utilities, and food/dining out then the rest is variable. Should somone spend more they will of course pay more tax and that WILL be the case but from a baseline argument the 999 plan reduces your tax burden.

    Even if someone spent every dime of their left over at the following levels they would come out ahead.

    $40,711 would be taxed an additional $481 if they blow all their money

    $100,000 would be taxed an additional $2,941 if they blow all their money

    $250,000 would be taxed an additional $14,416.20 if they blow all their money

  • apocomilitiaman

    Totally agree. The language needs to be restrictive on changes. However, remember this plan is just a prelude to the Fair Tax .

  • dvdmsr

    when it comes to satisfying basic needs that may include seeking nontaxed items to satisfy those needs in order to save paying the 9% sales tax.