9-9-9 tax plan
The 9-9-9 tax plan is the plan offered by Tea Party Republican presidential candidate Herman Cain to rid America of its current tax codes. In replacement, the 9-9-9 plan would provide for a 9% business flat tax, 9% individual flat tax, and a 9% national sales tax.
According to former Reagan Treasury official Gary Robbins, the 9-9-9 Plan will expand GDP by $2 trillion, create 6 million new jobs, increase business investment by one third, and increase wages by 10%. However, a family of four with an income of around $50,000 will end up paying approximately $2725 more per year under the plan. According to Cain's campaign, poorer families won't be hurt because their employers will be saving $4000 in social security taxes. Those savings could be passed on.
Another economics adviser to President Ronald Reagan was Art Laffer, famous for the “Laffer Curve”. He lauded the plan’s structure saying it would “lower the tax rate and broaden the tax base” while provide people with the least incentive to cheat on their taxes. He also emphasized the importance of eliminating the corporate tax rate.
One key point not mentioned about the 9-9-9 tax plan is that it hampers Democrats by taking away their class warfare politics and phony demands to pay your 'fair share' rhetoric. Also, the plan calls for 'all' Americans to pay. Just 53% of Americans actually pay federal taxes now.
- Herman Cain's 999 Plan
- What Could Cain’s 9-9-9 Plan Mean For You? Forer, Ben, October 12, 2011, abcnews.com, retrieved October 21, 2011
- REAGAN ECONOMIST ART LAFFER: CAIN‘S ’999‘ IS A ’WONDERFUL PLAN’, The Blaze, October 13, 2011