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| Can thousands of pages of tax code be replaced with 9-9-9? |
Regardless of where you stand on the Obama presidency, you have to admit that the economy blows. The stock market is a volatile mess, home prices are stagnant at best, unemployment remains high, foreclosures continue, and overall growth is slow. Reasonable people, of which I like to think I am one, have to be open to new ideas, because business as usual has turned out to be bad business.
Enter Herman Cain and his 9-9-9 Plan.
I have done my homework and have reached a conclusion about the plan. But let's not put the cart before the horse. First, four basic facts about the plan, presented as simply as I can.
- Cain proposes that we completely abolish the current tax code, which is universally detested, overly complex, and potentially "unfair." (Cheap applause because everyone hates the tax code.)
- Cain proposes that we replace the tax code with the very simple 9-9-9 Plan: this means corporations pay a 9% tax rate, individuals pay a 9% income tax rate, and we implement a 9% national sales tax on things we purchase (like groceries and other consumer goods).
- Cain proposes the elimination of payroll deductions (Social Security, Medicare) from our paychecks and the elimination of the capital gains tax, the estate/death tax, and virtually all other personal taxes.
- Cain claims that if we implement the 9-9-9 Plan, the total revenue trade off for our government is neutral. Intake from the old tax code would be essentially the same as intake from the 9-9-9 plan. (That's how they arrived at 9% as the magic the number.)
Now, for a little analysis. Let's think about the most fundamental implications of putting this plan into place.
