The most important meal of the day: Vox explains the new US tax law with cereal.
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“The Republican tax bill, explained with a bowl of cartoon cereal,” Alvin Chang, Vox.
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Republican presidential hopeful Herman Cain has been getting lots of attention for his bumper-sticker-sized economic policy, the All Meat Combo Original Jumbo “9-9-9” tax plan. Easy to remember; easy to misunderstand the burden it would place on working people and the poor if the government was wacky enough to implement it.
Here’s where those “9s” in the slogan come from. Throw out the unwieldy U.S. tax code, then replace it with a 9% tax on corporate profits, 9% on personal income, and a 9% tax on consumption.
What’s a “consumption tax?” A 9% federal sales tax or VAT on top of your local sales tax. If you live hand-to-mouth, you would pay 9% on 100% of your income as you earn it, then another 9% on what’s left of those dollars as you spend them to cover your family’s expenses. Result: Americans who earn the least would pay the most in taxes.
Republicans in Congress are holding middle class American families hostage at the bidding of their wealthy masters. GOP Congressmen refuse to continue Bush-era tax breaks for middle-income households unless millionaires get tax breaks, too. Astoundingly, they persist in arguing that tax breaks for the rich produces “trickle-down” benefits for the rest of us, the same nonsense they used to lead the country into financial ruin in the first place.
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