http://www.usatoday.com/news/opinion/editorials/story/2011-10-13/9-9-9-Cain-tax-editorial/50761434/1
Wealthy people in the 35% top tax bracket would find themselves paying 9% instead. Beyond that, the Cain plan would abolish taxes on capital gains, two-thirds of which are reported by taxpayers with annual incomes above $1 million, and on estates. No wonder 9-9-9 is so popular in certain circles.
If the rich pay less, the money has to come from somewhere, namely from lower-income people who now pay little or no income tax and who would also get slammed by the 9% national sales tax on food, clothing and other goods.
Talk about regressive.
Cain claims his plan is revenue neutral, but Bloomberg News estimates that 9-9-9 would have raised about $2 trillion last year, or $200 billion less than the government collected. Even giving Cain the benefit of the doubt, $2.2 trillion isn't enough at a time when the government is spending $3.7 trillion. To balance his first budget, something he promised in the debate, President Cain would have to slash $1.5 trillion in outlays — an amount equal to Social Security and defense, combined.
More at link.
Wealthy people in the 35% top tax bracket would find themselves paying 9% instead. Beyond that, the Cain plan would abolish taxes on capital gains, two-thirds of which are reported by taxpayers with annual incomes above $1 million, and on estates. No wonder 9-9-9 is so popular in certain circles.
If the rich pay less, the money has to come from somewhere, namely from lower-income people who now pay little or no income tax and who would also get slammed by the 9% national sales tax on food, clothing and other goods.
Talk about regressive.
Cain claims his plan is revenue neutral, but Bloomberg News estimates that 9-9-9 would have raised about $2 trillion last year, or $200 billion less than the government collected. Even giving Cain the benefit of the doubt, $2.2 trillion isn't enough at a time when the government is spending $3.7 trillion. To balance his first budget, something he promised in the debate, President Cain would have to slash $1.5 trillion in outlays — an amount equal to Social Security and defense, combined.
More at link.
