Herman Cain Would Veto 9-9-9 Plan Without Congressional Limits Included. Good News, But Is It enough to Stop Congress?

Today, Herman Cain acknowledged that he would veto his own 9-9-9 plan if Congress passed it without a 2/3 majority required to raise taxes about 9% per category.  This is important since the history of the Income tax (see below) is that it was introduced at rates of 1% – 7% (for those earning $20,000-$500,000) and escalated quickly after that and now stands at  10-35%.  At one point the income tax was 91-94% (you could only keep <10% of what you earned if you made “too much” money – thus the existence of “tax shelters”)!  Today Herman Cain was asked by this reporter if he would insist on a limit on Congress so they must have a 2/3 vote to raise tax rates greater than 9%.  He stated he would VETO any 9-9-9 plan without such a limit. (Forgive the National scene transgression…but this man made local news that will affect all our lives in the Bay area).



SEE YOUTUBE VIDEO OF HERMAN CAIN AGREEING TO VETO 9-9-9
WITHOUT CONGRESSIONAL LIMITS HERE:
YouTube Video Of Cain
http://www.youtube.com/watch?v=RYlSK8yjjcU&feature=player_detailpage

CainBookSigning


It is important that we make sure that any new national tax have serious limits on its ability to escalate.  Congress is notorious for raising taxes. Frankly, a better solution would be either a flat income tax or a national sales tax with abolition of all income taxes (also known as the Fair Tax). Even with some restraints on Congress, do you REALLY trust them with the power of a new national tax?  I don’t and many others don’t.  A fair tax would turn 9-9-9 into 0-0-23 and would give “pre-bate” checks to the poor to exempt them and still produce enough money for our government to run. 

That said, at least Mr. Herman Cain states he would veto a bill if it didn’t place limits on the ability to raise taxes higher than 9%.  Perhaps, he would want to give Congress even less power and just push for the Fair Tax. 

Here is the information on tax escalation under the income tax since 1913.  It is interesting to note that the Federal Reserve  was created in 1913 too and the same people created the income tax. Why?  To provide money for constant bank and corporate bailouts to run through the Federal Reserve?  Is there any coincidence that Mr. Cain is a former Federal Reserve Board Member from the Kansas City Fed?  It should concern the reader that a Federal Reserve member running for President is proposing a new tax. 

Historical Income Tax Rates & Brackets

(source, National Taxpayers Union at Link above).

Tax Rates 1

Bottom bracket

Top bracket

Calendar Year

Rate
(percent)

Taxable Income Up to

Rate
(percent)

Taxable
Income over

1913-15 1 20,000 7 500,000
1916 2 20,000 15 2,000,000
1917 2 2,000 67 2,000,000
1918 6 4,000 77 1,000,000
1919-20 4 4,000 73 1,000,000
1921 4 4,000 73 1,000,000
1922 4 4,000 56 200,000
1923 3 4,000 56 200,000
1924 2 1.5 4,000 46 500,000
1925-28 2 1? 4,000 25 100,000
1929 2 4? 4,000 24 100,000
1930-31 2 1? 4,000 25 100,000
1932-33 4 4,000 63 1,000,000
1934-35 3 4 4,000 63 1,000,000
1936-39 3 4 4,000 79 5,000,000
1940 3 4.4 4,000 81.1 5,000,000
1941 3 10 2,000 81 5,000,000
1942-434 3 19 2,000 88 200,000
1944-45 23 2,000 5 94 200,000
1946-47 19 2,000 5 86.45 200,000
1948-49 16.6 4,000 5 82.13 400,000
1950 17.4 4,000 5 91 400,000
1951 20.4 4,000 5 91 400,000
1952-53 22.2 4,000 5 92 400,000
1954-63 20 4,000 5 91 400,000
1964 16 1,000 77 400,000
1965-67 14 1,000 70 200,000
1968 14 1,000 6 75.25 200,000
1969 14 1,000 6 77 200,000
1970 14 1,000 6 71.75 200,000
1971 14 1,000 7 70 200,000
1972-78 814 1,000 7 70 200,000
1979-80 814 2,100 7 70 212,000
1981 89 13.825 2,100 79 69.125 212,000
1982 8 12 2,100 50 106,000
1983 8 11 2,100 50 106,000
1984 8 11 2,100 50 159,000
1985 8 11 2,180 50 165,480
1986 8 11 2,270 50 171,580
1987 8 11 3,000 38.5 90,000
1988 8 15 29,750 1028 29,750
1989 8 15 30,950 1028 30,950
1990 8 15 32,450 1028 32,450
1991 8 15 34,000 31 82,150
1992 8 15 35,800 31 86,500
1993 8 15 36,900 39.6 250,000
1994 8 15 38,000 39.6 250,000
1995 8 15 39,000 39.6 256,500
1996 8 15 40,100 39.6 263,750
1997 8 15 41,200 39.6 271,050
1998 8 15 42,350 39.6 278,450
1999 8 15 43,050 39.6 283,150
2000 8 15 43,850 39.6 288,350
2001 8 15 45,200 39.1 297,350
2002 8 10 12,000 38.6 307,050
200311 8 10 14,000 35.0 311,950
2004 8 10 14,300 35.0 319,100
2005 8 10 14,600 35.0 326,450
2006 8 10 15,100 35.0 336,550
2007 8 10 15,650 35.0 349,700
2008 8 10 16,050 35.0 357,700
2009

10

16,700 35.0 372,950
2010

10

16,700 35.0 373,650
201112

10

17,000 35.0 379,150

1 Taxable income excludes zero bracket amount from 1977 through 1986. Rates shown apply only to married persons filing joint returns beginning in 1948. Does not include either the add on minimum tax on preference items (1970-1982) or the alternative minimum tax (1979-present). Also, does not include the effects of the various tax benefit phase-outs (e.g. the personal exemption phase-out). From 1922 through 1986 and from 1991 forward, lower rates applied to long-term capital gains.

2 After earned-income deduction equal to 25 percent of earned income.

3 After earned-income deduction equal to 10 percent of earned income.

4 Exclusive of Victory Tax.

5 Subject to the following maximum effective rate limitations.

[year and maximum rate (in percent)] 1944-45 –90; 1946-47 –85.5; 1948-49 –77.0; 1950 –87.0; 1951 –87.2; 1952-53 –88.0; 1954-63 –87.0.

6 Includes surcharge of 7.5 percent in 1968, 10 percent in 1969, and 2.6 percent in 1970.

7 Earned income was subject to maximum marginal rates of 60 percent in 1971 and 50 percent from 1972 through 1981.

8 Beginning in 1975, a refundable earned-income credit is allowed for low-income individuals.

9 After tax credit is 1.25 percent against regular tax.

10 The benefit of the first rate bracket is eliminated by an increased rate above certain thresholds. The phase-out range of the benefit of the first rate bracket was as follows: Taxable income between $71,900 and $149,250 in 1988; taxable income between $74,850 and $155,320 in 1989; and taxable income between $78,400 and $162,770 in 1990. The phase-out of the benefit the first rate bracket was repealed for taxable years beginning after December 31, 1990. This added 5 percentage points to the marginal rate for those by the phaseout, producing a 33 percent effective rate.

11 Rates for 2003 are after enactment of the Jobs and Growth Tax Relief Reconciliation Act. Prior to enactment the rates were 10% up to $12,000 and 38.6% on amounts over $311,950.

12 The 2011 rates were extended for two years after enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

Sources: Joint Committee on Taxation, “Overview of Present Law and Economic Analysis Relating to Marginal Tax Rates and the President’s Individual Income Tax Rate Proposals” (JCX-6-01), March 6, 2001, and Congressional Research Service, “Statutory Individual Income Tax Rates and Other Elements of the Tax System: 1988 through 2008,” (RL34498) May 21, 2008. Tax Foundation, “Federal Individual Income Tax Rates History: Income Years 1913-2011,”

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