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Herman Cain's 9-9-9 plan saves the rich $. Costs the poor more

Republican presidential candidate Herman Cain's proposed 9-9-9 tax plan would shift the tax burden in the United States, raising taxes on the poor while cutting taxes for the wealthy.

Cain proposes to scrap the current tax code and replace it with a flat 9 percent tax on personal income, a second 9 percent tax on corporate income, and a third 9 percent tax on sales. It also would eliminate the payroll tax paid for Medicare and Social Security, the estate tax, and capital gains taxes.

While the Cain campaign has not produced enough details for thorough independent analysis, a flat 9 percent income tax and a 9 percent national sales tax would almost certainly mean higher taxes for at least the 30 million U.S. households that now pay no federal taxes.

And it almost certainly would mean big tax cuts for the wealthy, who now pay a 35 percent marginal rate on their income above $379,150.

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Comments

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Ricky J

So you do not have enough details for thorough independent analysis, yet you almost certainly know what the outcome is going to be? Save the rich money and cost the poor more? Speculate much?

Pat

It would be fair for all. Gotta have a job to pay taxes.

Talez

Ricky apparently needs a thorough independent analysis to figure out that nine is greater than zero and that nine is less than whatever number that millionaires pay that is in vogue this week.

Nelson

It sounds a lot more fair and simple than our current system.

paul

You aren't reading your own post. The 9% flat tax would replace federal income taxes and he would eliminate payroll taxes. The poor would pay less on a paycheck to paycheck basis because currently they pay income tax and payroll taxes and with the 9.9.9 plan they would only pay the equivalent of the payroll tax without also paying the federal tax (regardless if they get it back at the end of the year).

Tea Baggery

the plan proposes taxing those that do not pay income tax the majority of which are either, seniors, poor, disabled, or minors.
The percentages thrown around by conservatives about how many do not pay income taxes do not tell the whole story, but they never do.
9-9-9 is a gimmick and a bad one at that.

SpatialOrientation

Please don't actually consider taking Herman Cain seriously. Free market economists and economic policy analysts found all sorts of shortcomings in Cain's 9-9-9 infomercial-like tax plan (see here: http://spatialorientation.com/tag/herman-cain/), but what should we expect from a former board member of the Federal Reserve? Don’t try to phase in the Fair Tax, just implement it. We need to stop falling for these simple sound bite applause lines that contain no substance.

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