fbpx
U

The Money-Guy’s Take on 9-9-9

October 14, 2011

Everyone’s gearing up for Election 2012 and recently, there has been a lot of talk and debate about Herman Cain’s 9-9-9 plan.  In today’s show, we evaluate Cain’s plan and tell you what we like about it, what hesitations we have, and share some numbers we ran to test it.

What we like:

  1.  It’s seductively easy.  Featuring a 9% business flat tax, 9% individual flat tax, and a 9% national sales tax, Cain’s plan is one that anyone can understand.   Our current tax system has gotten so incredibly complex, that a plan this simple plan is definitely appealing.
  2. It eliminates a lot of the current loopholes and the special interest side of things that so many of us are concerned about in our current system.
  3.  It’s outside the box.  It’s interesting to see someone propose something so bold and radical.  9-9-9 essentially wipes away our current system and starts over.

What gives us pause:

  1.  Adding new tax (sales tax) while keeping existing tax (income tax).
  2.  It’s hard to trust the government.  9-9-9 might be good for the current time, but what stops them from changing it to 27-27-27 later?
  3. How does this affect independent contractors?  There are many companies who do not hire actual employees, but primarily use independent contractors for their work.   How will this be treated?
  4. How would retirement savings be affected?  There are probably many Americans nearing retirement who are living off of savings, which have already been taxed, and would now face a new consumption tax.

For some additional facts and debate on Herman Cain’s plan, check out The Wall Street Journal’s Cain’s Tax Mutiny and Debating Herman Cain’s Bold 9-9-9 Tax Reform Plan.

To be clear, we are not endorsing Mr. Cain as the next President of the United States.  We simply want to educate our listeners on some of the economic aspects surrounding the current debates.

We would love to hear if you guys have any feedback on this.  Please post below, on our Facebook page, or email us at brian@money-guy.com or bo@money-guy.com!

 

 

FILED UNDER: Podcasts

Most Recent Episodes

Financial Advisors Share What They WISH They Knew About Money Earlier!

Have you ever felt like if you just knew this one thing about money earlier your finances would be in a better spot? In this episode, we’ll share the five biggest things we wish we knew about money earlier!   In this episode, you'll learn: What we wish we knew earlier...

Dave Ramsey vs. The Money Guy: Which Strategy is The Best?

Dave Ramsey has an incredible legacy of helping folks get out of debt and take control of their financial lives. We agree on a lot of things, but there are a few points of contrast. In this episode, we’ll discuss differences between The Money Guy Show and Dave Ramsey...

Top 4 Financial Mistakes We Saw This Year! (2022)

We saw some wild financial mistakes this year during the bear market. From making extreme changes to portfolio allocation, chasing the hot dot, and using too much leverage, we’ll talk about some of the biggest financial mistakes we saw in 2022 in this episode.   In...

How Millionaires Build Wealth! (With Dave Ramsey)

Join us for a very special episode as we welcome personal finance radio host and influencer Dave Ramsey to The Money Guy Show! There’s so much misinformation out there about building wealth. We had the pleasure of having a great conversation about how millionaires...

Do These 4 Things with Your Finances BEFORE 2023!

There are unique financial opportunities available at the end of the year - especially this year with the market down. In this episode, we’ll talk about what you need to do with your money BEFORE 2023! In this episode, you'll learn: What you need to do with your money...

How to Win When the Financial World is Burning!

Lately it’s felt like the financial world is in chaos, with rising interest rates, a falling stock market, and high inflation. Let’s talk about how to focus on what you can control and how to minimize the time spent worrying about what you can’t control. In this...

Financial Advisors React to RIDICULOUS Money Advice on TikTok!

The most powerful time to get serious about building wealth is when you’re young. So, what is the younger generation learning? Financial Advice (good and bad) is being produced in massive rates across online platforms and TikTok is the new frontier. Is there good...

Loss Harvesting: Why Wealthy People Love It (And You Should Too!)

Tax-loss harvesting: what is it and should you be doing it? In this episode, we’ll cover everything you need to know about tax-loss harvesting, including whether it makes sense for you, how much it could save you in taxes, and how to eliminate the downside of loss...

The Market is Crashing! (Where Should You Put Your Money?)

The stock market has not had a great year so far. You might be asking yourself, “Since the market is crashing, where should I put my money now?” In this episode, we’ll discuss how to invest when the market is dropping and how to make the most of your money. In this...

Will Rising Interest Rates Tank the Economy?!

The Federal Reserve is raising interest rates to combat inflation, and many are concerned about how it will affect the economy. In this episode, we’ll discuss what rising interest rates means for your wallet and how to make the best of it. In this episode, you'll...