When I’m wrong, I’ll admit that I am wrong. Apparently, I was wrong in my assumption regarding Cain’s 9-9-9 Tax Plan. There are some items that I overlooked – one of which was the fact that I would no longer pay Payroll taxes of 7.65%. This was pointed out by Bob – thanks, Bob. I dug a little further and discovered I would no longer have any deductions, except charitable and, since I don’t live in the inner city, I don’t receive a tax credit for that.
When I did my original comparison, I just took my salary – what I earn from my employer – and used those figures. I only used the standard deduction and the personal exemption for the current figures. For my spending, I went through the checkbook and took out all of my spending for the month of September.
Here’s what I did this time.
I’m used September’s figures for spending. I’m added in the Payroll taxes for both the current plan. I used my actual deductions – divided out by 12 – from my last year’s income tax return. Since Cain’s plan allows for charitable deductions, I subtracted my charitable deductions from his plan.
This time it worked out that I currently pay $2,890 more in taxes now than I would under Herman Cain’s plan. Since the only criteria I was using for this plan was how it would affect me – and only me – then I have to say, it is a good plan.
Sorry, but I do.
However; here’s what I wrote the last time:
Here’s what I recommend – don’t take my word on whether or not you like the Cain Plan. Do the math for yourself. Figure out exactly how much more or how much less you’ll pay in taxes. Come to your own conclusion. That’s what we should really be doing anyway. Checking out the plans and weighing our options.
I stand by that recommendation. You should figure out whether or not this is a good plan for you. But, actually do the math and figure it out – don’t just guess or believe what someone else writes. Too many people will believe whatever someone emails them. Somedays, I wonder if laziness is the real reason we’re in this mess.
Now, that I have said that, a consideration should be made for whether or not this is a good plan for the country. I’m not sure that it is. Cain has stated that the country will gain more in revenue from this plan than we do currently. I just don’t see how that is possible. If I’m saving nearly $3,000 per year, shouldn’t everyone in my situation be saving that amount? Will we really gain enough on those people who will pay more to make up the difference for those who will pay less? It’s just a thought.