Where does that figure come from? What I mean is, how is it arrived at? What taxes figure in to it. Since Cain's plan removes specific, identified taxes from the equation I assume there are other federal excise taxes that will remain and which might alter that 22% figure.
Your take home pay will go up by almost 8%, because the payroll tax is eliminated.
Assuming, of course, that your company takes the savings it realizes from a expense it has occurred and out of the goodness of its corporate heart it passes it on to the employees who didn't pay it to begin with. Knowing my company as I do, I'm not holding my breath on that one.
FairTax.org has been studying this for years. It's a reliable figure (acutally it's even a little on the conservative side--meaning it's probably higher).
Assuming, of course, that your company takes the savings it realizes from a expense it has occurred and out of the goodness of its corporate heart it passes it on to the employees who didn't pay it to begin with.
Ummmm no, were only talking about the employee half of payroll tax. That part that shows up on your paycheck. That tax is eliminated, so instead of being deducted from your paycheck, it will be included in your take home pay.
If they employer kicked in their half (the expense you're referring to) then we'd be talking an over 15% increase in take home pay.