How much more would herman cains dont mess with taxes. Rich lowrie talked about 2012 republican presidential candidate herman cains 999 tax proposal to replace the current federal tax code, which he. In other words, we pay income taxes, we pay taxes on earnings and things that our assets might generate. He stressed the plan is revenue neutral and would generate more income as businesses grow. Herman cain grew up in georgia with wonderful parents and little else. Herman cain born december, 1945 is an american politician, business executive, syndicated columnist, and tea party activist cain. Reconciling corporation book and tax net income, tax years. The book details the 999 plan and traces its history along with cain and other. Because the job of a book author is not necessarily steady, there is an ebb and flow of income, some years might be more profitable than others some years, not at all. Cains father worked three jobs because he wanted his family to have more opportunity. They think youre stupid, by herman cain may 31, 2005. Politifact the facts about herman cains 999 tax plan. Republican 2012 presidential candidate herman cain talked about his 999 tax plan, which calls for a 9 percent business tax, a 9 percent personal income tax, and a 9 percent national sales tax.
Mitt romneys economic plan has 59 points and is bound into a 161page book. Herman cain announced today in detroit, michigan that his empowerment zones would create opportunities for the poor to save under 999. Estate tax causes farmers to have to sell the farm. Bernie sanders believes that he can fund his program by tacking on a 90, seven point, five percent wealth tax. Forms search order forms most popular forms form 40 form 40a form 40nr form 40v filing information automatic extension information mailing addresses for. According to cain, corporations would be able to deduct costs of goods sold provided the. You may search by form number, title of the form, division, tax category, andor year. Herman hosts a weekly radio talk show, the bottom line.
Reconciling corporation book and tax net income, tax years 19952001 the schedule m1 reconciliation does not include the net operating loss deduction or other special deductions, such as the deduction for dividends received, because these two items are subtracted from tax net income in order to determine income subject. News reports describe it as a 9 percent tax rate on business and personal income, combined with a 9 percent national sales tax. Does the herman cain 999 tax plan have a fatal flaw. Toder said cains plan was a massive tax increase on lowincome working people. The figures for income taxes and the sales tax are higher than but roughly in the same ballpark as estimates from independent experts. This essay analyzes the components of the 999 plan. Cain reveals 999 math with projection of no revenue loss. Ultimately, though, cain was forced to admit for the first time that some people with lower incomes would pay more under the plan. Cains tax plan is flatter hes proposing a 9 percent personal tax, a 9 percent business tax and a 9 percent federal sales tax to make up for the decreased revenue. Herman is the former chairman of godfathers pizza, federal reserve bank of kansas city and board of the national restaurant association. Fox distorts impact of cains 999 plan on lowincome.
Forms to view a complete listing of forms for individual income tax, please visit the forms page. May 23, 2011, fox news sunday 2012 presidential candidate herman cain outlining his proposal on a new national sales tax to replace the personal income tax h. Holley ulbrich is alumni distinguished professor emerita of economics at clemson university and a senior scholar at the strom thurmond institute. The facts about herman cains 999 tax plan politifact. Reuters the most important thing to know about the herman cains famous 9. If youre at or below the poverty level, your plan isnt 999, cain said. One reason we have progressive rates on the income tax is to offset the regressivity of other taxes, especially sales and excise taxes and now herman cain is. With recent polls showing increased support for herman cain as the g. Low income people tend to spend about 98 percent of their income, middle income people spend 97 percent and high income people spend 90 percent. Kamala harris is latest 2020 dem contender to release taxes. States also have income taxes, which presumably would be eliminated along with the federal income tax, thus generating another revenue issue. Cains flat 9 percent income tax also would replace payroll taxes, which all workers pay and that fund medicare and social security, and would end the estate tax, which is a tax on inheritances. Federal income taxes at 9% national sales tax of 9% for all products, on top of any state and local taxes the idea bears similarities with a computer game called simcity4 but. His new book released last week is entitled, this is herman cain.
Former godfathers pizza ceo herman cain is running for president as. Parsing the republican presidential candidates wickedly silly idea. Ok we get it you read one econ book in school and now you are a genius. The 999 plan was a tax proposal that was a centerpiece of herman cains 2012 campaign for the republican partys nomination for president of the united states. But adding a national retail sales tax on top of the federal income tax even a flat tax is a bad idea, because it creates the infrastructure for a.
Herman cain may have based presidential bid around his 999 tax plan, but some of his other numbers may not be adding up. Herman cain makes a campaign stop and launches his new book. Herman cains plan would eliminate the current individual income tax, corporate income tax, payroll tax, and estate and gift tax and substitute. Political and economic analysis of a flat and fair tax under new legislation in the u. We dont have a tax on your wealth or your net worth. Individual income tax alabama department of revenue. Herman cain believes there is a better leader in everyone and that leadership is about recognizing the potential in yourself and others. Cain, a tea party movement favorite, has ambitious plans for taxes and spending, replacing the current tax system with his 999 forumla. Cut the personal income tax to 9 percent, the current corporate income tax from 35 to 9 percent and impose a. It is my understanding that the poor would basically be exempted from the 9% personal tax in the 999 plan but would continue to contribute to the federal government through the 9% sales tax. Top 20% of earners pay nearly 80% of all income taxes. With a 9 percent tax rate for sales and gross income for individuals.
The 999 plan was a tax proposal that was a centerpiece of herman cains 2012 campaign. The centerpiece of cains presidential campaign introduced in august 2011 has been the 999 plan, which would replace all current taxes including the payroll tax, capital gains tax, and the estate tax with 9% business transaction tax. Herman cain has been getting a lot of attention lately, not least for his. Herman cain abolish income tax, introduce national sales.
Herman cain wants to bake up a new threelayer tax cake to replace the current federal tax stew. Taxes site michigan taxes, tax, income tax, business tax, sales tax, tax form, 1040, w9, treasury, withholding browsers that can not handle javascript will not be able to access some features of this site. He calls it the 999 plan, which consists of a brandnew retail sales tax layered on top of a new. The herman cain show by wj abc news runs fake footage of.
Republican 2012 presidential candidate herman cain talked about his 999 tax plan, which calls for a 9 percent january 24, 2012 social security payroll tax cut extension. Trump considering herman cain for federal reserve board. Based on descriptions from the cain campaign website and fiscal associates, the firm that. Indeed 999 would necessarily alter but not replace state tax policy. And a 9 percent national sales tax, explained cain at last weeks gop debate. On taxes and fences, herman cain stumbles a bit the new. As the former ceo of godfathers pizza explained how. The plan called for the replacement of all current taxes, such as the payroll tax, capital gains tax, and the estate tax, with a 9% personal income tax, 9% federal sales tax, and a 9% corporate tax.
The plan would replace the current tax code with a 9% personal income tax, a 9% federal. He now serves as a motivational speaker and has authored books on. Herman cains political star is lately on the rise, thanks in no small part to the persistent marketing of his 999 plan to reform the tax code. Cains plan would throw out the current tax system in favor of a 9 percent corporate tax, a 9 percent income tax and a new 9 percent national sales tax. With finite time available, a book i am trying to write, etcetera, i am often reluctant to spend a lot of time learning the details of tax proposals not just by temporarily highflying candidates, but also by presidential administrations and congressional leaders when i suspect, as frequently and with good. Technically, herman cain is incorrect about the severability of state income taxes from federal income taxes simply because most states tax code start with information contained on the current federal income 1040 and w2 forms. If youre one of the minority of people the top 10% of the population who pay 70% of the income tax revenues, you might see the change as a good deal.
When politicians buy their own books the new yorker. He said friday that poor people under his plan would be exempt from paying the income tax. That system has workers pay part of their income into personalized savings accounts. Presidential candidate herman cain has proposed replacing current laws income, payroll and estate taxes with his 999 plan a 9 percent individual flat tax, a 9 percent business flat tax, and a 9 percent sales tax.
Herman cains plan would eliminate the current individual income tax, corporate income tax, payroll tax, and estate and gift tax and substitute three taxes imposed at a 9 percent rate. Cains 999 plan would cut taxes for the rich, raise taxes for almost everyone else herman cains 999 tax plan would result in a massive tax cut for nearly all of the highest earning americans and a steep average tax hike for everyone else, according to a new tax policy center analysis. The key here is how much you pay in income taxes under the current system. Republican presidential candidate herman cain s 999 tax proposal would generate as much revenue for the u. Businessman herman cain, who has surged to the front of the republican presidential nomination race in large part because of his 999 tax proposal, tried to defend his tax plan on national television sunday. Herman cain born december, 1945 is an american politician, business executive, syndicated columnist, and tea party activist. Consider the 18 percent of households who pay neither payroll nor federal income tax on account of low wages and high tax credits.
Cain said his 999 plan 9 percent corporate tax, 9 percent personal income tax and 9 percent national sales tax is a bold solution to the nations weak economy and those who didnt agree had likely tampered with the plans formula. She is the author of public finance in theory and practice. Herman cains 999 tax plan is it really that simple. Herman cain supports abolishing the irs and imposing a fair tax which, according to experts, would mean a tax cut for the wealthy and an increase. Cains 999 plan would cut taxes for the rich, raise. The 999 plan was a tax proposal that was a centerpiece of herman cain s 2012 campaign for the republican partys nomination for president of the united states.
The candidates memoir makes it plain that, yes, he will move to slash corporate and personal income taxes and include a fair tax on sales. This is herman cain apparently went to the printer before the candidate completed the formulation of his 999 tax plan. Herman cains 999 plan lacks an understanding of how governments have acted recently when they have adopted the kind of sales taxes it would inaugurate. Cains flat 9 percent income tax also would replace payroll taxes, which. Herman cain 2012 republican presidential candidate. An army of davids, written by herman cain and rich lowrie, was released.