This plan completely erases the current code.
Cain, himself, said the 16th amendment stands and the income tax would not be immediately done away with.. and he is correct, there is no way it could be, so this is a VAT tax which MOST conservatives have always fought against... he did say this was a phase in to the Fair Tax, but he talks like he will be President forever and in fact we already know all it takes is a change in congress or a change in the holder of the office to screw the little people. Fact is seniors have paid all these taxes already, and Cain is not putting in any kind of exemption so they will be taxed on money they have already paid tax and they will pay taxes on things they can afford to pay taxes on but are in many cases life-saving.... people need to get their head out of the clouds.. the original Fair Tax (which this is not) was not what Cain is advocating, Cain’s plan sounds spiffy because the man is a smooth talker, but this is not a spiffy plan.. not even close.
Yes, it does, and along with that, it terminates all money that is paid into medicare and social security.