Herman Cain 999 Plan Part II

8/3/2019 Herman Cain 999 Plan Part II

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FiscalAssociates,Inc Page1of10 DraftSeptember2011

Table1a

Gross Domestic Product, by Use 2008

$ billions % of

Gross domestic product 14,369.1 GDP

Personal consumption expenditures 10,104.5 70.3%

Gross private domestic investment 2,096.7 14.6%

Net exports of goods and services -710.4 -4.9%

Government consumption expenditures and gross investment 2,878.3 20.0%

Government consumption expenditures 2,382.8 16.6%

Government gross investment 495.5 3.4%

Table1b

Imputed Gross Domestic Product 2008

$ billions % of

Gross domestic product 14,369.1 GDPLess: Imputed output

Nonbusiness capital income 1,141.6 8.8%

Consumption of general government fixed capital 260.7 2.0%

Margins on owner-built housing 0.6 0.0%

Farm products consumed on farms 0.2 0.0%

Gross domestic product without imputed output 12,966.0

Addendum: Rearranged income and spending

Employment-related payments 580.5 4.5%

Services furnished persons without payment by financial intermediaries 653.8 5.0%

Table1c

Gross Domestic Product Less Imputed Output 2008

$ billions % of



Gross private domestic investment 1,576.2 12.2%

Net exports of goods and services -710.4 -5.5%

Government consumption expenditures and gross investment 2,617.6 20.2%

Government consumption expenditures 2,122.1 16.4%Government gross investment 495.5 3.8%


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Table2

Gross Domestic Product, by Legal Form of Producer 2008

$ billions % of


Private business 10,691.0 74.4%

Households and institutions 1,808.0 12.6%

Government enterprises 172.5 1.2%

General government 1,697.6 11.8%

Without imputations

Gross domestic product 12,966.0


Households and institutions 666.4 5.1%



Table3

Gross Domestic Product, by Factor Income 2008

$ billions % of

Gross Domestic Product 14,369.1 GDP

Less: Taxes on production and imports x property taxes 633.4 4.4%

Plus: Subsidies 52.8 0.4%

Equals

Factor Income 13,788.4 96.0%

Compensation of employees 8,060.8 56.1%


Households and institutions 670.0 4.7%



Gross capital income plus property taxes 5,727.6 39.9%


Households and institutions 1,141.6 7.9%


General government 260.7 1.8%

Without imputations

Gross Domestic Product 12,966.0

Less: Taxes on production and imports x property taxes 633.4 4.9%

Plus: Subsidies 52.8 0.4%

Equals: Factor Income 12,385.3 95.5%

Compensation of employees 8,060.6 62.2%

Gross capital income plus property taxes 4,324.7 33.4%


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Table4

Personal Income and Its Disposition 2008

$ billions % of

Personal income 12,391.1 PICompensation of employees, received 8,065.8 65.1%

Proprietors' income 1,102.0 8.9%

Rental income of persons 222.0 1.8%

Personal income receipts on assets 2,109.3 17.0%

Personal interest income 1,314.7 10.6%

Personal dividend income 794.6 6.4%

Personal current transfer receipts 1,879.2 15.2%

Government social benefits to persons 1,842.6 14.9%

Other current transfer receipts, from business(net) 36.7 0.3%

Less: Contributions for government social insurance 987.2 8.0%

Less: Personal current taxes 1,438.2 11.6%Equals: Disposable personal income 10,952.9 88.4%

Less: Personal outlays 10,505.0 84.8%


Personal interest payments 246.2 2.0%

Personal current transfer payments 154.3 1.2%

To government 89.7 0.7%

To the rest of the world (net) 64.6 0.5%

Equals: Personal saving 447.9 3.6%

Table5

Federal Taxes 2008

$ billions % of


Current receipts 2,503.1 17.4%

Less: Corporate tax paid by Fed 31.7 0.2%

Plus: Estate and gift taxes paid by persons 28.2 0.2%

Current receipts, adjusted 2,499.6 17.4%

Personal income taxes 1,102.8 7.7%

Taxes on production and imports 96.0 0.7%Corporate income taxes 200.5 1.4%

Contributions for government social insurance 972.4 6.8%

Estate and gift taxes paid by persons 28.2 0.2%

Taxes to be replaced 2,303.8 16.0%

Personal income taxes 1,102.8 7.7%

Corporate income taxes 200.5 1.4%


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Payroll Taxes 972.4 6.8%

Estate and gift taxes paid by persons 28.2 0.2%


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Table6

PovertyGrantunderTaxReformProposals

Poverty Thresholds for 2001-2010 by Size of Family

One person (unrelated individual) 2000 2008 2010 Average

Under 65 years 8,959 11,201 11,344 10,076

65 years and over 8,259 10,326 10,458 9,289Two persons

Householder under 65 years 11,590 14,489 14,676 13,036

Householder 65 years and over 10,419 13,030 13,195 11,720

Three persons 13,738 17,163 17,378 15,447

Four persons 17,603 17,163 17,378 15,447

Five persons 20,819 22,025 22,314 19,803

Six persons 23,528 26,049 26,417 23,419

Seven persons 26,754 29,456 29,887 26,463

Eight persons 29,701 33,529 33,919 30,064

Nine persons or more 35,060 37,220 37,863 33,398

Number of Families for 2001-2010 by Size of Family

One person (unrelated individual) 2000 2008 2010 Average

Under 65 years 34,458 38,602 38,878 37,097

65 years and over 10,658 12,025 12,111 11,641

Two persons

Householder under 65 years 22,377 25,106 25,410 24,212

Householder 65 years and over 9,580 10,551 10,679 10,096

Three persons 16,079 17,504 17,555 17,169

Four persons 14,638 15,092 15,006 15,239

Five persons 6,259 7,015 7,095 6,767

Six persons 2,193 2,410 2,406 2,350Seven persons 718 815 844 742.125

Eight persons 298 317 328 287.625

Nine persons or more 246 213 221 197.625

Total Number of Families 115,461 129,504 129,231 124,278

Base for Poverty Grant ($billions) 1,388.60 1,912.05 1,985.15 1,678.28

Weighted Average Size of Grant ($) 12,027 14,764 15,361 13,481

Source: U.S. Census Bureau, Current Population Survey, March Supplement 2010.


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Table7

Business Transactions Tax Base and Rate 2008

$billions % of


Less: Net Exports -710.4 4.9%

Equals Gross domestic purchases 15,079.5 104.9%

Imputation Adjustments

Less: Nonbusiness capital income -1,141.6 7.9%

Plus: Nonbusiness capital investment 519.9 3.6%

Less: Farm products consumed on farms -0.2 0.0%

Less: Nonbusiness capital investment -519.9 3.6%

Less: Margins on owner-built housing -0.6 0.0%

Less: Consumption of general government fixed capital -260.7 1.8%

Equals Gross domestic purchases, adjusted 13,676.4 95.2%

Less: Gross private domestic investment, adjusted -1,576.2 11.0%

Less: Current surplus of government enterprises, adjusted -66.6 0.5%

Less: Corporate tax paid by Fed -31.7 0.2%

Gross BTT tax base 12,001.9 83.5%

Taxes to be raised 2,303.8 16.0%

Tax Rate on Business Transactions Tax Base 19.2%


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Table8

Comprehensive Factor Income Tax Base and Rate 2008

$ billions % of


Less: Taxes on production and imports -1,045.1 7.3%Imputation Adjustments

Less: Nonbusiness capital income -1,141.6 7.9%

Plus: Nonbusiness capital investment 519.9 3.6%

Less: Farm products consumed on farms -0.2 0.0%

Less: Nonbusiness capital investment -519.9 3.6%

Less: Margins on owner-built housing -0.6 0.0%

Less: Consumption of general government fixed capital -260.7 1.8%

Other deductions

Less: Wage and salary disbursements -6,559.0 45.6%

Less: Gross private domestic investment, adjusted -1,576.2 11.0%

Less: Current surplus of government enterprises, adjusted -66.6 0.5%Less: Corporate tax paid by Fed -31.7 0.2%

Equals Business Tax Base 3,687.3 25.7%

Wages and Salaries 6,559.0 45.6%

Equals Personal Tax Base Adjusted 6,559.0 45.6%

Comprehensive Tax Base Before Exemption 10,246.3 71.3%


Tax Rate on Comprehensive Factor Income Tax Base 22.5%


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Table9

Sales Tax Bases and Rate 2008

$ billions % of


Personal consumption expenditures 10,104.5 70.3%Less: Output of nonprofit institutions serving households -759.2 5.3%

Imputation Adjustments

Less: Space rent for owner-occupied housing -1,197.2 8.3%

Plus: Intermediate inputs for owner-occupied housing 167.4 1.2%

Plus: Investment in owner-occupied housing 390.5 2.7%

Less: Services furnished persons without payment by financial intermediaries -653.8 4.5%

Less: Food furnished to employees, including military and domestic service 14.3 0.1%

Less: Standard clothing issued to military personnel -0.4 0.0%

Less: Employees' lodging -0.7 0.0%

Equals National Sales Tax Base 8,065.4 56.1%

Expansion to Sales Tax Base for Comprehensive Sales Tax 2,741.7 19.1%Compensation of general government workers 1,436.9 10.0%

Compensation of institutions 651.0 4.5%

Untaxed services from intermediaries 653.8 4.5%

Comprehensive Sales Tax Base 10,807.0 75.2%


Comprehensive Sales Tax rate on income tax basis 21.3%

on sales tax basis 27.1%

Table10a

Recap of Tax Reform Proposals 2008

$ billions %

Base Rate

Business Transactions Tax 12,001.9 19.2%

Comprehensive Factor Income Tax 10,246.3 22.5%

Comprehensive Sales Tax 10,807.0 21.3%

2008

Combined Reform Proposals $ billions %

Base Rate

Business Transactions Plus Factor Income Tax 22,248.3 10.4%Business Transactions Plus Sales Tax 22,808.9 10.1%

Factor Income Plus Sales Tax 21,053.4 10.9%

Business Transactions Plus Factor Income Plus Sales Tax 33,055.3 7.0%


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Table10b

Underreporting Adjustment for Tax Reform Proposals 2008

$ billions %

Base Rate

Business Transactions Tax 11,472.4 20.1%Comprehensive Factor Income Tax 9,694.4 23.8%


2008


Base Rate

Business Transactions Plus Factor Income Tax 21,169.1 10.9%

Business Transactions Plus Sales Tax 21,736.6 10.6%



Table10c

Adding Poverty Grant to Tax Reform Proposals 2008

$ billions %

Base Rate

Business Transactions Tax 9,479.5 24.3%

Comprehensive Factor Income Tax 7,701.5 29.9%


2008


Base RateBusiness Transactions Plus Factor Income Tax 17,183.2 13.4%

Business Transactions Plus Sales Tax 17,750.8 13.0%




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Table11

ResultofFullReplacementofCorporateandPersonal

Income,PayrollandEstateTaxes

(Amountsin$billions)

Baseline Static Results Dynamic Results

2008 Level Dif %Dif Level Dif %Dif

Gross domestic product 14,369 14,369 0 0.0% 16,455 2,086 14.5%

Private Business Capital Stocks 27,451 27,451 0 0.0% 37,148 9,698 35.3%

Total hours worked 259 259 0 0.0% 271 11 4.4%

Total Federal receipts 2,531 2,531 0 0.0% 2,906 375 14.8%

Capital transfer receipts 28 0 -28 -100.0% 0 -28 -100.0%

Current receipts 2,502 2,531 28 1.1% 2,906 403 16.1%

Current tax receipts 1,448 2,448 1,001 69.1% 2,818 1,370 94.6% Broad-Base Tax 0 2,304 2,304 0.0% 2,655 2,655 0.

Personal current taxes 1,103 0 -1,103 -100.0% 0 -1,103 -100.0

Taxes on production and imports 96 96 0 0.0% 109 13 14.0%

Excise taxes 67 67 0 0.0% 76 9 14.0%

Customs duties 29 29 0 0.0% 33 4 14.0%

Taxes on corporate income 232 32 -200 -86.4% 36 -196 -84.4%

Federal Reserve banks 32 32 0 0.0% 36 5 14.5%

Other (Corporate income tax) 200 0 -200 -100.0% 0 -200 -100.0%

Taxes from the rest of the world 17 17 0 0.0% 17 0 0.0%

Contributions for social insurance 972 0 -972 -100.0% 0 -972 -100.0%

Income receipts on assets 31 31 0 0.0% 31 0 0.0%

Interest receipts 21 21 0 0.0% 21 0 0.0%

Rents and royalties 10 10 0 0.0% 10 0 0.0%

Current transfer receipts 55 55 0 0.0% 63 8 14.0%

From business 35 35 0 0.0% 40 5 14.0%

From persons 20 20 0 0.0% 23 3 14.0%

Current surplus of government

enterprises -4 -4 0 0.0% -6 -2 50.2%

Herman Cain 999 Plan Part II

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