[alicewonders]

I think he missed the point - 9 percent would replace ALL other taxes, if I’m understanding Cain - so the city/state/fed would each get 3 percent, right?

This is the first I've heard of this. Does this mean that the Fed would be telling the cities and states how much tax they would get? Really?

[beachn4fun]

I'm not sure exactly how it's suppose to work. I only caught a portion of Cain's interview with Cavuto.

Here is what he says on his website:

Phase 1 - 9-9-9 Current circumstances call for bolder action. The Phase 1 Enhanced Plan incorporates the features of Phase One and gets us a step closer to Phase two. I call on the Super Committee to pass the Phase 1 Enhanced Plan along with their spending cut package.

The Phase 1 Enhanced Plan unites Flat Tax supporters with Fair tax supporters.

Achieves the broadest possible tax base along with the lowest possible rate of 9%.

It ends the Payroll Tax completely – a permanent holiday!

Zero capital gains tax

Ends the Death Tax.

Eliminates double taxation of dividends

Business Flat Tax – 9%

Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders.

Empowerment Zones will offer additional deductions for payroll employed in the zone.

Individual Flat Tax – 9%.

Gross income less charitable deductions.

Empowerment Zones will offer additional deductions for those living and/or working in the zone.

National Sales Tax – 9%. This gets the Fair Tax off the sidelines and into the game.

(will have to do more reading and discuss with hubby)