Is Herman Cain’s 9-9-9 tax plan fair?

By Jackie Kucinich, USA TODAY

WASHINGTON – Herman Cain’s standing in the polls in the race for the Republican presidential nomination has risen with the growing popularity of his 9-9-9 tax plan, which has become such a signature issue for the former pizza company executive that the crowds who come to see him speak routinely cheer at its mention.

The plan, which calls for a 9% income tax, 9% national sales tax and 9% corporate income tax, would create tax equality and stabilize federal finances, Cain said.

“And it’ll save all of us, collectively, $430 billion a year that we spend to fill out the stupid tax code — 9-9-9,” Cain said at a speech in Washington last week.

Not so fast, say tax experts from all parts of the political spectrum. While Cain’s plan has an appealing simplicity to Americans frustrated with the nation’s labyrinthine tax system, it would dump a much heavier tax burden on low-income citizens.

Cain’s campaign has not released enough specifics about the plan to determine whether it is progressive or regressive, said Will McBride, an economist with the nonpartisan Tax Foundation, but “any sort of movement to a consumption tax, which this is with the sales tax, is a move away from progressivity.”

“Warren Buffett can’t reasonably spend $40 million a year on consumption,” he said. “It just happens that folks that make more money, they consume less of their income.”

To read more, visit:  http://www.usatoday.com/money/perfi/taxes/story/2011-10-10/herman-cain-9-9-9-tax-plan/50723976/1

Short URL: https://reteaparty.com/?p=3765