The following are responses to an HCN Daily item about Herman Cain's 9-9-9 tax plan, built around a 9% business tax, a 9% individual tax and a 9% national sales tax. It would also eliminate the mortgage interest deduction.]
“I'm for [the 9-9-9 plan]. What no one is talking about is the undercurrent of money from illegal activities that this plan will catch and tax at least 9%. Currently no revenue is generated from this source. Would it be great if this didn't exist? Yes. Is that realistic? No. This plan will catch money on BOTH sides of the ball. Wages being paid to illegal residents will at least get caught when they spend their wages and money earned by persons engaged in illegal activities will get taxed when they spend it. The underground economy will always exist, and it is being taxed at 0% right now.”
— Kent Porter
Porters Building Centers
"Almost anything is better than what we have. His plan is simple, fair and will spur economic growth. I think any criticism of his plan or others similar is spurred from a misconception that too little tax revenue is our problem. There is already too much tax revenue. The problem is an oppressive government growing on credit terms at our expense. No government in history has ever been close to this big, and it was unsustainable years ago. Herman Cain’s solution is great for the revenue side. I hope he has a great plan about the spending side and the massive shrinkage of government that must happen if we are to survive.”
— Jeff Wilson
“In my discussions about this plan, most people forget that it is supposed to eliminate all other federal taxes, thus simplifying and lowering some things in our life. I’ve asked numerous young people and they are against it, thinking that now they will pay more in taxes until I ask them if they buy gasoline, fly on a plane, or use a cell phone. To which they say, 'I didn’t know all those had federal taxes on them.' Like most things, the media plays people to whatever slant they land on. I’m still undecided for a couple of reasons:
“1. Will they ever really eliminate other taxes, permanently?
“2. Will there be a ceiling that the 9-9-9 [plan] will never increase?”
— Erv Sweet
“What are the unintended consequences of the plan?
“No deductions for that home improvement loan and 9% more cost added to building materials. We know how quickly a 10% increase kills a category in the store.
“No tax on used merchandise? How long before an ugly underground economy immerges that skirts building codes.”
— Tom Fromelt