Republican presidential candidate Herman Cain, the former CEO of Godfather’s Pizza, is enjoying a surge in the Republican presidential polls as of late, with some pointing to his “9-9-9” tax plan as one reason for his surge in the polls.
Under Cain’s “9-9-9” tax plan, the existing tax code would be blown up and replaced by a 9 percent income tax on individuals, a 9 percent tax on corporations, and a 9 percent national sales tax, and while Cain’s plan sounds great in theory, the devil is in the details:
However, a much longer list of economists say Cain’s plan would be a tax hike for the lower middle class and a tax windfall for the wealthy.
If you have a family of four with an income of just under $50,000, they could end up paying more under the Cain plan. Currently, they are taxed around $3,850 in income tax. Under Cain’s plan, they would be taxed at 9 percent or pay $4,500.
That’s $650 more.
Although the family would save almost $4,000 in Social Security taxes, it would have to give up the child tax credit worth the same amount. 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 could end up paying $2,725 more.
So remember folks…if you’re poor or solidly middle class, Herman Cain wants to raise your taxes. After all, nothing says “fairness” like hiking taxes on the very folks who can least afford to pay more in taxes, just so that you can give a tax breaks to your rich pals.