Roth IRA holders will be nailed with 9-9-9.

Discussion in 'Economics' started by jackpearson, Oct 15, 2011.

  1. They paid their taxes on their IRA balance to convert it to a Roth so they wouldn't have to pay taxes on the money in the future.

    Now Cain wants to charge those people 9% more on everything they buy.


  2. What exactly do you want?

    You dont want to pay anything at all?

    Are you one of those crazies who believe that taxation is unconstitutional?

    From the towelheads living in the Afghan caves to rich snobs on the French Riveira, nobody likes to pay taxes but we need SOME revenue man. Even if Cain cuts like crazy which no doubt he will, there has to be SOME revenue especially for a country as large as the USA.
    No doubt some exemptions will be made, for example even in the communist UK, VAT of 20% is not applicable to books and food items if i am not wrong.

    let's look at some other countries

    I believe Singapore which has one of the most competitive and productive economies in the world has a 10% VAT, 18-20% max income tax rate. Hong Kong regularly cited as the freest economy in the world has no sales tax, 20% max income tax, but then its security needs are taken care of by the Chinese government. It does not need to maintain a sizeable armed forces like Singapore.

    My point is all these things cost money, You have to pay at least something.

    9-9-9 is the best option for the USA.
  3. jprad


    Care to point us to the section in the Constitution that allows personal income to be taxed?

    Here's a hint; you won't find it...
  4. There isn't any way to change the tax system so that nobody gets a hosing to a degree. Have to go with what's best overall. And unless you've got LOTS of money in your Roth, the 9% hosing you'd take on spending that would be minor compared to having your income taxed at a low flat rate into the future.

    Social Security was paid into with after-tax dollars. Social security retirement payments are taxed as ordinary income to one degree or another.. that's a hosing.. same money taxed twice... and maybe at max tax rates both times.

    There are other examples...
  5. pupu


    No need to worry

    Republicans will never let a black man run in their name
  6. N54_Fan


    You DO realize that you would STILL have to pay sales tax even under todays rules dont you? Roth IRAs just mean you do not pay income tax on the capital appreciation because you already paid income tax.

    The entire point behind Roth IRAs and conversions is that those of us that think INCOME tax will be higher in retirement than we pay now would potentially save money by paying taxes now. It says nothing about state or sales tax. If we are wrong and INCOME taxes go DOWN in our retirement then we lose money by paying taxes now.
  7. clacy


    Big deal. When the Dow soars to 25,000, because of tax reform, they will be more than happy.
  8. Isn't he talking about a new, 9% NATIONAL sales tax... in addition to whatever state sales tax he was going to have to pay anyway?

    We should have had a national sales tax long ago... not in addition to what we already have but in place of it (or part of it). It's been estimate that a national sales tax would collect an additional $200 Million from the non-tax paying underground.
  9. N54_Fan


    My understanding of the 9% sales tax is a FLAT national sales tax. I do not think it is in addition to the state sales tax that exists in most states. However, I am NOT certain about this as I have not studied his plan extensively.
  10. clacy


    I'm not sure how a federal tax system could eliminate and compensate for various state taxes. I'm guessing that he is talking strictly Federal, and whatever state taxes (income, sales and otherwise) would be up to the various states.
    #10     Oct 15, 2011