LawFuel.com – Bloomberg’s Julianna Goldman has suggested the 9-9-9 tax plan proposed by Herman Cain would raise less than the $2 trillion tax take currently received by the Government and questions have arisen as sa result of Goldman’s question.
Herman Cain basked in the attention that his catchy 9-9-9 tax-overhaul plan was getting during Tuesday night’s economic debate. But he seemed to stumble over a question about how much benefit it would actually produce.
“The problem with that analysis is that it is incorrect,” Cain said. Cain is a former CEO and radio talk show host and the 9-9-9 plan is designed to replace the current tax system with a 9% flat income tax for individuals, a 9% flat tax for corporations, and a new 9% national sales tax.
Cain suggested the plan would reduce the average worker’s tax rate by six points, cutting 15.3 per cent in the payroll tax rate.
However, the worker’s share of the payroll tax is only half that 15.3% which is 7.65%. A 9% flat income tax rate could result in a direct tax increase on workers, rather than a decrease even before the new sales tax.