I actually ran the numbers against my own income and I would pay less tax under Cain's plan. This is assuming I spend every dollar that I can spend (which isn't true), in reality my taxes would be even more reduced than my math suggests. Of course, I'm single, have no kids, don't itemize deductions, etc... Basically fall into the "most screwed" class of people in the current tax system. Most of my income is earned income, thus I pay FICA on most of it. I don't have any deductions. I don't get the earned income credit, child tax credit, or other credits/deductions for having kids. Really, I'm not opposed to eliminating tax benefits for having children and all the special deductions people take on their tax return. Fraud is huge. It's just too easy to say you donated $2,000 in "household goods" to your church (AKA, you avoided paying a dump fee by donating your garbage instead of taking it to the dump.)
The concerns I have with Cain's tax system is he gives massively preferential tax treatment to investment income (it's not taxed), creates a new national sales tax (I can see the tax rate increasing in the future and I'm not a fan of sales taxes to begin with), and I question his revenue neutral math (only information I've seen suggests that it is NOT revenue neutral. Will he have to increase his 9/9/9 to 18/18/18 to make it get current tax revenue? Ugh. That'd be a tax increase for me.)
"You're the only person that decides how far you'll go and what you're capable of." - Ben Saunders (Explorer and Endurance Athlete)
Some independent group ran some numbers and they concluded 84% of the population would see their taxes go up. And it's not the top 84%...
Edit: Found it
Study: Cain Tax Plan Raises Taxes On 84 Percent | Fox News
Herman Cain's 9-9-9 tax plan would raise taxes on 84 percent of U.S. households, according to an independent analysis released Tuesday, contradicting claims by the Republican presidential candidate that most Americans would see a tax cut.
The Tax Policy Center, a Washington think tank, says low- and middle-income families would be hit hardest, with households making between $10,000 and $20,000 seeing their taxes increase by nearly 950 percent.
"You're talking a $2,700 tax increase for people with incomes between $10,000 and $20,000," said Roberton Williams, a senior fellow at the Tax Policy Center. "That's huge."
Last edited by Deuce; 10-19-11 at 09:49 PM.
One of you will end up here next!