MSNBC: Tax group: 9-9-9, a 'major tax cut' for the rich, 'substantial' increase on othersSubmitted by RatPAC on Thu, 10/13/2011 - 11:16
Tax group: 9-9-9, a 'major tax cut' for the rich, 'substantial' increase on others
By NBC’s Domenico Montanaro, Political Reporter, NBC News
Herman Cain’s 9-9-9 economic plan got lots of attention at last night’s debate. It was said, in fact, 24 times, by NBC’s count.
Despite Jon Huntsman’s quip, it is not the “price of a pizza.”
So what is it, and what does it do? It would completely change the tax structure in the country and replace it with a:
- 9% income tax,
- 9% national sales tax, and
- 9% corporate income tax
Deductions, including the popular mortgage deduction, would be eliminated. There would be an exception, however, for charities.
It eliminates the capital-gains tax, which benefits those who make money in the stock market. And it eliminates the payroll tax, which funds Social Security.
Because of the current progressive tax system, the poor, working class, and many considered middle class pay zero (or close to zero) in income tax. They account for about 40% of the country.
The non-partisan Tax Policy Center is readying a report on Cain’s plan, though it is waiting for more details from the campaign. But it has come to some conclusions already.
Cain’s plan "cuts taxes for the rich and raises taxes on the poor,” Roberton Williams, a senior fellow at the center, tells First Read. He added that it would create a "much more regressive tax system.”
The plan would represent a “major tax cut” for the rich and raise taxes “substantially” on the poor and middle class, Williams said. "Given that a big chunk doesn’t pay any income tax, this would be a big tax increase on people at bottom end. At the top end, the opposite happens."