9, 9, 9.
My son was griping about this plan. The idea of paying 9% in income tax and an additional 9% in sales tax stuck in his craw.
My daughter broke it down like this:
On her last paycheck, she earned $415. She was actually paid $359. So she paid 13.5% in federal taxes. (With Cain, she’d pay less)
She’s trying to save up for a cheap, used car. If she saves that money, she won’t have to pay the 9% until she spends it. (She won’t pay anything in taxes for a used car - only if she buys new.)
I told him that I liked the plan because it rewards savers.
I then pointed out to him that he uses Coin Star to cash out his tips. He’s paying a 10% surcharge because he’s too lazy to count and roll his own money. I told him that, if 10% meant that much to him, he’d do it himself. (He’s now sworn off Coin Star.)
If Cain’s 9-9-9 plan is anything like the Fair Tax, the products will only be taxed at the retail level. this means that overall prices will go down and it may end up being a wash. (Plus the 9% corporate tax that’s passed on to consumers)
I love the simplicity of the plan.