The phases of Cain's plan, copied from his website:
Phase 1, 9-9-9:
- 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.
- Amidst a backdrop of the economic boom created by the Phase 1 Enhanced Plan, I will begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax.
- The Fair Tax would ultimately replace individual and corporate income taxes.
- It would make it possible to end the IRS as we know it.
- The Fair Tax makes our exported goods and services the most competitively internationally than any other tax system.
Nathan Lewis at Forbes, Flat Tax vs. Fair Tax vs. Herman Cain's 9-9-9 Plan
Edward Morissey at the Fiscal Times, 9-9-Nein! The Herman Cain Mutiny
Bruce Bartlett in the NYT, Inside the Cain Tax Plan
5 Reasons to Reject It