[SoJoCo]

Consider a couple getting $25,000/year in SS benefits and earning another $25,000 in income. According to a calculator I found, they would pay something like $850 in taxes. Under Cain's plan, they would pay $2,250 in income taxes on the $25,000 wages plus be subject to a 9% national sales tax.

Cain's plan allows for charitable deductions only. If they are getting $25K from Social Security and $25K from other income then won't they get taxed on the whole amount? That would make their taxes $4500 plus the 9% on everything they buy.

[DTxAg]

I’m assuming Cain wouldn’t tax SS benefits. Maybe a valid assumption, maybe not. It would be ridiculously stupid to tax SS benefits, though.