According to the Washington Post Republican presidential candidate Herman Cain flat tax plan which he calls his "9-9-9" plan, is a 9 percent income tax, a 9 percent business transactions tax and a 9 percent federal sales tax. Herman Cain’s 9-9-9 plan resonated with voters which helped him catapult the top spot. The problem with Herman Cain’s 9-9-9 plan is it would increase inequality by reducing rates on rich households, while increasing them on low and middle income households. All, however, would probably lead to less revenue for the US government, analysts say, meaning spending cuts of a sizable degree would be in order.
Herman Cain’s plan would exempt people whose income falls below the pov...
... middle of paper ...
...eadlines - The Washington Post. 13 Oct. 2011. Web. 09 Dec. 2011.
Oliphant, James. "Herman Cain Drops out of Presidential Race - Los Angeles Times." Featured Articles From The Los Angeles Times. 03 Dec. 2011. Web. 09 Dec. 2011.
Sahadi, Jeanne. "What's a Flat Tax? - Oct. 24, 2011." CNNMoney - Business, Financial and Personal Finance News. 24 Oct. 2011. Web. 09 Dec. 2011.
Scherer, Ron. "Which GOP Flat Tax Plan Is Fairest of Them All? - Yahoo! News." Yahoo! News - Latest News & Headlines. 26 Oct. 2011. Web. 09 Dec. 2011.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- For years many people have been clamoring for a flat tax rate which would make a fairer tax system, but what is flat tax. According to CNN a flat tax is only one tax rate, considering that today's system has a series of rates, a flat tax would include an exemption based on family size similar to today's standard deduction that everyone can take. With a flat tax system, that exemption would be the only tax break anyone would get. Today's tax code has a complicated amount of tax credits, deductions and exemptions.... [tags: Economy, Politics]
1253 words (3.6 pages)
- The current tax system is extremely complicated and punishes those who are successful by taxing people more than the average citizens. If flat tax were to be in the United States it would create fairness within the economy and be less complicated. Flat tax would not punish people for having higher income; instead flat tax would create equality to all tax payers. The taxpayers would not be complaining to the neighbors or their close relatives about their tax rates and how different they are from each other.... [tags: marginal tax, income tax]
1738 words (5 pages)
- The current tax system is extremely complicated and punishes those who are successful by taxing people more than the average citizens. If flat tax were to be in the United States it would create fairness within the economy and be less complicated. Flat tax would not punish people for having higher income; instead flat tax would create equality to all tax payers. The taxpayers would not be complaining to the neighbors or their close relatives about their tax rates and how different they are from each other.... [tags: tax system, economy, United States, taxpayers]
1681 words (4.8 pages)
- In 2010, the top 20% of the nation 's population owned 85.1% of the nation 's income and 80% of the nation’s population only owned 14.9% of the nation’s wealth. Five years later, the top 1% of the United States nation now owns more additional income than the bottom 90% of the nation 's population. Enacting a flat tax would require people to pay the same percentage of their income. Even though a flat tax would enhance the economy 's long-term advancement, a flat tax should not be implemented as the United States new way of taxation because the top wealthiest 1% possess 40% of the nation 's wealth and it penalizes the low-income segment of the population.... [tags: Taxation in the United States, Tax, United States]
1020 words (2.9 pages)
- The freedom of our land brings with it the freedom to disagree. Tax policy is one of the most highly debated topics in modern politics, and its roots date back to the founding of our nation. The average American’s quality of life is greatly dependent on the net income of a household. The tax system in our federal government affects every citizen in the United States because it takes money out of everyone’s pockets. The general trend is that a higher tax rate equates to a more restricted budget for many Americans.... [tags: Tax, Income tax, Progressive tax]
1820 words (5.2 pages)
- A flat tax is a system of taxation that taxes at a uniform rate, regardless of income level. In the United States we currently use a progressive tax system, which means that high-income earners pay taxes at a higher rate than low-income earners. A flat tax rate is a tax system can uses a constant percentage as a deduction, which is applied to individual income. There are various tax systems that are labeled a flat tax even though they are significantly different. A true flat rate tax is a system of taxation is where one tax rate is applied to all personal income with no personal deductions.... [tags: Tax, Progressive tax]
1206 words (3.4 pages)
- Our society today has strived to become familiar with our present tax system, but some just cannot come to terms with it. The current tax code is unfair to those who are single, work for under $50, 000 dollars per year, or have large families. The high tax percentages and low exemptions make it difficult for the average worker to prosper and get ahead in today’s world. The tax system also discourages citizens from saving and investing their earnings, ultimately pulling down the American economy.... [tags: Economics]
1694 words (4.8 pages)
- Flat Tax Let’s Hear it for the Flat Tax Do you think we should abolish the Internal Revenue Service. If you were to ask your family, friends and neighbors, you would get a resounding YES. That was my outcome when I, as an income tax preparer, surveyed my clients as well as my family, friends and neighbors. The comments ran from “It’s too complex”, “It’s unfair” to “They are too powerful”. Not one person was happy with the tax code as it currently stands. That is not to say people do not want to pay their fair share.... [tags: Essays Papers]
789 words (2.3 pages)
- Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue. The current tax system that the United States uses contains several flaws. First of all, it is very complex. It is comprised of many various variables that can create loopholes. These loopholes can cause two equal income families to be paying very different tax rates.... [tags: essays research papers]
482 words (1.4 pages)
- The Flat Tax The “consumption tax” as a replacement for the income tax is at least a subject of noteworthy question and debate. It seems as though, the means in relation to the ends are not always justifiable, but when approached properly, can benefit all. To answer the question of whether a consumption tax should be applied, I examined both my morals and my ideas of capitalism and free enterprise in relation to democracy. Is it fair to establish a tax that rewards the already wealthy and pose a threat to the already shaky financial standing of the poor.... [tags: Economics]
844 words (2.4 pages)