Overshadowing the quibbles from the Right this new ABC analysis of Cain's ultra regressive 999 tax plan, broadcast on the Network News tonight should sink Herman Cain's Presidential campaign more quickly than just about anything I can think of.
9-9-9 Plan Would Almost Double Taxes on Middle Class
By Ben Forer
Oct 12, 2011 6:19pm
Cain developed the plan with the help of a little known accountant from Cleveland named Rich Lowrie.
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 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 Cain’s plan, they would be taxed at 9 percent or pay $4,500.
That’s $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.
Well not quite double but a hefty 9i% increase in taxes for a typical Middle Class family under Cain's 999 tax plan.
So if the Middle Class is a big loser under Cain's 999 tax plan who would the big winners be? Wealthy Elites that's who. Duh!
The poor would be made to pay more under Cain's 999 tax plan too to pay for his huge tax cuts on huge incomes.
Cain's 9-9-9 plan: Good for the rich, bad for the poor
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."
"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."
Essentially Cain's proposition to voters is just a more radical version of the entire Republican Party's efforts to keep taxes on the wealthy low by making everybody else pay more.