So what happens when you start to earn a few dollars over the poverty level, do just those additional dollars get taxed, or do suddenly get a whammy of a tax on the whole thing?
And if you don’t get a whammy of a tax on the whole thing, does that mean the first poverty-level of income is exempt from the 9% for everyone?
In both cases, I do believe his impact analyses have to be changed to reflect this, no?
I don't know about Cain's plan (even he might not know for sure what his plan is) but I would let everybody (even Warren Buffett) claim the poverty level as a tax deduction and then tax everything above that at a flat rate.
That would make the most sense, and would be easy to implement.
However the envious mob will cry out "Oh no, why does Warren Buffett need a deduction? We can't give that rich bastard a deduction."
The correct response would be that with or without the deduction he will pay almost the same amount, and if he wants to be nice he can choose to not take it if he feels like being a wee bit charitable.
That’s a good question, and my solution to that would be this:
fix a “poverty level” dollar amount per person. All money earned in the household above the poverty level per person will be taxed at 9%.
So, if poverty level, for example, is set at $4,000 per person, a couple with 2 children would not be taxed on the first $16,000 they bring home.
9% tax on every dollar above that amount.