I wanted to discuss the 9-9-9 tax plan, not in a political way but in a practical view. Offered by Herman Cain, a Republican presidential nomination candidate, the proposal calls for 9 percent business transaction, personal income and federal sales taxes.

Who will benefit from this plan? Corporations will have a tax reduction from a possible 39 percent to 9 percent, and higher income taxpayers will have a tax reduction from 35 percent to 9 percent.

Who potentially will be hurt by this tax schedule? The average taxpayer with income less than $70,000 (single filers) and $110,000 (married filing jointly).

How will the federal sales tax affect people? If this does not eliminate the state sales tax, we would have an additional sales tax of 9 percent. If the federal sales tax replaces the state sales tax, most people in North Carolina would see an increase of 2.25 percent in sales tax; this is because their cities or counties have approved extra local sales taxes in addition to the state’s rate.

Please apply any plan – the 9-9-9 or other proposals – to your situation and those of the average taxpayer before you decide whether to support it.

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From now to the end of the year, people usually start thinking about giving. Here are a few suggestions to think about:

> Annual gift exclusion – The annual gift tax exclusion is $13,000 per person per year.

> Charitable gifts – You might want to make your charitable gifts before Dec. 31. If you itemize on your return, you will be able to take the allowable deduction on your 2011 tax return. For noncash gifts, you will need an itemized list (dates, descriptions and values) if you give more than $500.

> Charitable organizations – Make sure your organization is recognized by the Internal Revenue Service prior to making your deduction. You can check the exempt status of your organization through the IRS’s website, irs.gov; search for Publication 78.

> Individual retirement account charitable contributions – You might want to look at the opportunity available for IRA distributions to be made as charitable contributions.

> IRA required minimum distribution – If you turn 70 1/2, and you have an employer-sponsored IRA or 401(k) plan, there is a required minimum distribution. If you fail to take this, there is a penalty of 50 percent of the amount not taken.

Of course, this information is general in nature and should not be acted upon without checking to determine its applicability to your situation.

Mary Currie is a certified public accountant practicing in Rocky Mount.