Bottom line: Most people’s taxes would go up!! Do the math. Sit down and figure it out for YOUR situation. What are you paying now? What will you pay under the 9-9-9 plan in income taxes and sales taxes. And don’t forget the impact of the payroll taxes. Do you REALLY think you won’t have to pay anything for whatever will replace social security?
Calculating my situation:
2010 effective tax rate: 13.59%
2012 changes to tax rate: 16.37%
9-9-9 assuming everything I earn is paid for taxable items:
17.19%
9-9-9 assuming my employer passes on the payroll taxes to me:
13.46% + I have more to spend (about $3600)
9-9-9 assuming an evil employer and 75% of items are taxable:
15.14%
Because of what I believe it will do to the economy and prices, this seems reasonable to me. It is a step in the right direction. Someone who is paying nothing now will view that differently, of course.