And 9% on all their income regardless of source. All the extra exemptions retirees enjoy under the current laws will disappear under Cain's plan. It's a major tax increase for most people. Not something one would want to base a presidential campaign on.
In exchange for an abolition of the current system which taxes yout 40-45% of you income via direct and indirect taxation as well as elminates all forms of double taxation such as Capital Gains taxes Therefore you actually see a major reduction in your overall tax burden while at the same time majorly simplifying and clarifying the tax system.