Herman Cain's "Five-Point Tax Plan"

[Vi-Jay 218]

Herman Cain's "Five-Point Tax Plan"

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This is Herman Cain's tax plan for when he is the President of the United States of America:

1. Eliminate the taxes on repatriated profits, which are earnings of American-based multinational companies that sit in bank accounts overseas to avoid double taxation for bringing their profits back to the U.S.

2. Make the current tax rates permanent. Families and businesses do not plan for two years at a time!

3. Reduce the corporate income tax from 35 to 25 percent, with the potential for additional incremental decreases over time.

4. Eliminate the tax on capital gains and their dividends.

5. Suspend payroll taxes for both employees and employers for one year.

___________________________________________________________

I think I'm getting an erection.

[Mr. Big Dog 10,747]

So, Herman Cain wants to really blow the budget. That doesn't get me excited at all.

[Vi-Jay 218]

So, Herman Cain wants to really blow the budget. That doesn't get me excited at all.

It seems impossible huh?

I just watched an interview with him. He said;

Debt ceiling- no vote. Pay only the debt interest and the military. (He mentioned 3 but I didn't get the 3rd.)

Budget - he would cut 10% across the board and do a "deep dive" to find and eliminate unnecessary spending, departments and funded programs. Included a gov furlough if needed and "that probably wouldn't be a bad thing".

Edited May 10, 2011 by Vi-Jay

[I AM NOT THAT GUY 5,715]

So, Herman Cain wants to really blow the budget. That doesn't get me excited at all.

There is the difference, between somebody that has a plan, and somebody that just complains about everything.

[Mr. Big Dog 10,747]

It seems impossible huh?

I just watched an interview with him. He said;

Debt ceiling- no vote. Pay only the debt interest and the military. (He mentioned 3 but I didn't get the 3rd.)

Budget - he would cut 10% across the board and do a "deep dive" to find and eliminate unnecessary spending, departments and funded programs. Included a gov furlough if needed and "that probably wouldn't be a bad thing".

10% across the board, yes? That presumably doesn't include SS, Medicare and Medicaid as that would require legislation to cut benefits 10% which would not exactly be considered a realistic proposal. So, 41% of the 3.3 trillion budget are off the table. Leaves 2 trillion dollars to play with. 10% of that would be 200 billion. The lions share of that would come out of defense - good luck with that in the GOP. But let's just say that it can be done. Leaving the current income tax rates intact takes somewhere in the range of $350 billion out of the revenue side of the ledger. At this point, we've already added $150 billion dollars to the deficit annually. Suspend payroll taxes for 1 year: $865 billion worth of lost revenues. So, year one, we're increasing the deficit by a trillion dollars. Let that sink in - that would take the deficit to well over 2 trillion dollars in a single year. Add to that the lost capital gains and dividend taxes as well as the reduced corporate taxes and pretty soon, you're talking about a really blown budget. Add to that the opposition to increase the debt ceiling and you know that this isn't a serious proposal. We'd be bust before this man would ever take office and go south from there. Sorry but the math clearly is against Herman Cain.

[Mr. Big Dog 10,747]

There is the difference, between somebody that has a plan, and somebody that just complains about everything.

Who's complaining about everything? Certainly not me. I've stated time and again that solving the budget issues takes the balls to look at both sides of the ledger to close the gap. Does tax revenue need to go up? Absolutely. Anyone denying that is living in some fantasy world.

[CarlosAndSveta 808]

Herman Cain's "Five-Point Tax Plan"

--------------------------------------------------------------------------------

This is Herman Cain's tax plan for when he is the President of the United States of America:

1. Eliminate the taxes on repatriated profits, which are earnings of American-based multinational companies that sit in bank accounts overseas to avoid double taxation for bringing their profits back to the U.S.

2. Make the current tax rates permanent. Families and businesses do not plan for two years at a time!

3. Reduce the corporate income tax from 35 to 25 percent, with the potential for additional incremental decreases over time.

4. Eliminate the tax on capital gains and their dividends.

5. Suspend payroll taxes for both employees and employers for one year.

___________________________________________________________

I think I'm getting an erection.

Item number one sounds like bull$hit. There is no double taxation on earnings of controlled foreign corporations ( corporations in which a U.S. shareholder has more than 50% ownership). That is taken care of by the foreign tax credit.

[Mr. Big Dog 10,747]

Item number one sounds like bull$hit. There is no double taxation on earnings of controlled foreign corporations ( corporations in which a U.S. shareholder has more than 50% ownership). That is taken care of by the foreign tax credit.

This is P&R. No facts, please. You're eroding that erection Vi-Jay was working up over this nonsense. Explain that to his wife!

[Vi-Jay 218]

Item number one sounds like bull$hit. There is no double taxation on earnings of controlled foreign corporations ( corporations in which a U.S. shareholder has more than 50% ownership). That is taken care of by the foreign tax credit.

Help me understand please.

Does the FTC match foreign taxes paid 100%? Dollar for Dollar?

[Obama 2012 1,714]

Who's complaining about everything? Certainly not me. I've stated time and again that solving the budget issues takes the balls to look at both sides of the ledger to close the gap. Does tax revenue need to go up? Absolutely. Anyone denying that is living in some fantasy world.

Depends really and the way it goes up is also what comes into question.

If you reduce spending, then revenues don't necessarily need to go up.

Also if you create proper incentives for growth in the economy, then revenues would go up.

Just raising taxes though could cause revenues to actually decrease at the end of the day.

The problem with increasing revenue either way you do it, is responsible spending. Democrats and Republicans both have shown they cannot do this. The Dems campaigned on this in '06 and lied through their teeth and now look at the further mess we are in.

Personally, I saw F the government, let it collapse and don't send them a dime. VIVA REVOLUTION!!!

[Vi-Jay 218]

This is P&R. No facts, please. You're eroding that erection Vi-Jay was working up over this nonsense. Explain that to his wife!

That was funny.

Hey, I didn't say I swallowed the hook. I just stated that Cain's tax plan gave me a feeling of euphoria that was hmmmm, motivating.

If the gov gives me 1)a 10% pay raise 2) let me keep all my gains and divs 3)another 1 year pay raise via payroll tax relief... I'm gonna celebrate! and then, I'm gonna check my back pocket to make sure I still got my wallet.

[CarlosAndSveta 808]

Help me understand please.

Does the FTC match foreign taxes paid 100%? Dollar for Dollar?

This is a very simplified explanation. U.S. persons (for tax purposes a corporation is a person) are taxed on their worldwide income. To help avoid double taxation, the Internal Revenue Code provides a foreign tax credit for income earned outside of the U.S (foreign sourced income). The amount of the foreign tax credit is limited to the lesser of foreign income taxes paid on the foreign sourced income or the U.S. tax on the foreign sourced income.

[Mr. Big Dog 10,747]

Depends really and the way it goes up is also what comes into question.

No, it doesn't depend. The budget issue cannot be resolved without looking at both sides of the ledger.

[I AM NOT THAT GUY 5,715]

The foreign tax credit is intended to relieve you of the double tax burden when your foreign source income is taxed by both the United States and the foreign country. Generally, if the foreign tax rate is higher than the U.S. rate, there will be no U.S. tax on the foreign income. If the foreign tax rate is lower than the U.S. rate, U.S. tax on the foreign income will be limited to the difference between the rates. The foreign tax credit can only reduce U.S. taxes on foreign source income; it cannot reduce U.S. taxes on U.S. source income.

http://www.irs.gov/businesses/small/international/article/0,,id=97037,00.html

[Mr. Big Dog 10,747]

Bummer. So Herman Cain is not only putting forth a budget busting plan but also an ignorant one suggesting that double taxation exists when that's not the case. Buh-bye, Herman. Was fun having you in the spotlight for a minute.

Talking about being in the spotlight for a minute, where the ** is The Donald? AJ?