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Where in the United States does a family income of $49,000 = purchasing power of 46,000?

I looked at federal taxes ONLY, as the 9-9-9 plan does not change local or state taxes. Posted something like this the other day.

Median household income in 2010: roughly $49,500

Under Current Tax System:
1. $2,796.75 in Social Security and Medicare taxes personally.
2. $3,786.75 in Social Security and Medicare taxes from employer(s).
3. The $49,500 is treated as a business deduction, so no corporate taxes are owed.
4. Assuming a married couple filing jointly with 2 kids, there is a $11,400 deduction, and $14,600 in exemptions.
5. This gives you $23,500 in taxable income, for a total tax of $2,615. But they also get $2,000 in tax credits plus others, so they owe $0 in income taxes.
6. The household therefore takes home $46,703.25 after taxes, and the employer(s) paid $3,786.75.
7. From the employee's perspective, $5,148 has been credited in the Social Security system for the employee's retirement.

Under Cain Plan:
1. $0 in Social Security and Medicare taxes personally.
2. $0 in Social Security and Medicare taxes from employer(s).
3. The $49,500 is not treated as a business deduction, so $4,455 in corporate taxes are owed.
4. Assuming a married couple filing jointly with 2 kids, the household owes $4,455.
5. The household therefore takes home $45,045 after taxes, and the employer(s) paid $4,455.
6. From the employee's perspective, $0 has been credited in the Social Security system for the employee's retirement.
7. The 9% sales tax reduces that to around $40,990 in spending power.

Good analysis, but the fact is that $0 is currently "credited" towards any employee's retirement in Social Security, every penny is spent by the politicians. I use the normal meaning of credited not the surreal political meaning.

What I like about your analysis is that is shows there is no more free lunch for the middle class which really means no more free lunch for America. We have reached the end of our ability to borrow and spend our way to prosperity and now we all (including the middle class) have to pay for our past borrowing and wasteful spending.

However what your analysis doesn't show is that the flat corporate tax sets the stage for a huge revival of high productivity manufacturing in America. Also this sets the stage for the current social security ponzi scheme to be wound down with current and imminent retirees getting their promised benefits but no more fake trust funds for future retirees.

Let's expand that model to a retired couple living on SS alone (God help them) or SS and dividends. They would gain from paying no tax on dividends (if I understand correctly). However they would now pay an additional 9% on virtually everything they buy, including food which used to be exempt.

The question is, would they benefit or get hosed?