Freedomworks has done an analysis [LINK]on Cain's 999 Tax plan and they say:
Mr. Cain's 999 plan is on the right track with its goal of a lower, flatter, simpler, fairer, more transparent tax system. Nine percent would be a wonderful top rate for the income tax, compared to today's 35% top rate. And let's face it, abolishing the payroll tax and the death tax would simply be awesome.
But adding a national retail sales tax on top of the federal income tax (even a flat tax) is a bad idea, because it creates the infrastructure for a federal-level, European-style VAT.
And if Cain's 9% personal flat tax failed to remain flat (as happened with Ronald Reagan's promising but ultimately failed 1986 tax reform), we would end up with the worst of both worlds: a confiscatory income tax and a job-crushing VAT.
Paradoxically, then, if you want higher taxes and permanently bigger government, one way to get there would be to support Herman Cain's 999 plan!
Two rousing cheers, for boldness and imagination. And one bronx cheer, for a dangerous lack of foresight.
Interesting info. Thanks.
No, it's a transition to having both a national sales tax and a national income tax - and then 9-9-9 will turn into 99-99-99.
Never give liberal Democrats both a federal income tax combined with a federal sales tax. They will increment this plan over the years to 29-29-29.