what about the 9-9-9 plan would destroy the middle class?
Here's a good introduction by an austrian school economist, and a video by a chicago leaning school economist afterward
If you have a family of four with an income of just under $50,000, they would pay more under the Cain plan. Currently, they are taxed at just less than 7 percent and pay $3,400 in income tax. Under Cains plan, they would be taxed at 9 percent or pay $4,500.
Thats $1,100 more.
Although the family would save almost $4,000 in Social Security taxes, it would have to give up the child tax credit of $4,000. Furthermore, it would pay an additional national sales tax of 9 percent on everything purchased, including groceries and clothes, which totals about $2,000.
That means under the Cain plan that family would be almost doubling its taxes, going from $3,400 to $6,500.
The changes in income taxes would turn away from the progressive tax policy that's shaped U.S. policy for a century, based on the principle that the wealthier people are, the more they can afford to pay in taxes to the society that's enriched them.
"The plan could be expected to raise substantial amounts of revenue, but does so largely by skewing downwards the distribution of tax burdens," said a new analysis of the Cain plan this week by Edward D. Kleinbard, a professor of tax law at the University of Southern California. He's also a former chief of staff at the congressional Joint Committee on Taxation, which analyzes all tax legislation for Congress. "The 9-9-9 Plan would materially raise the tax burden on many low- and middle-income taxpayers."
Others agree.
"It's regressive, relative to what we have now," said Roberton Williams, a senior fellow at the Tax Policy Center, a joint effort of the Urban Institute and Brookings Institution, center-left policy-research centers. "It would raise taxes for people at the bottom and lower taxes at the top end."
video
The Last Word - Secrets of Herman Cain's 999 plan revealed
Herman Cain 999 Plan = Higher Taxes - YouTube
999 Plan: Herman Cain's Proposal Would Raise Taxes On 84 Percent, Study Shows
Cains 999 Plan Hell on the Middle Class and Doomsday for the Poor & Retired