Discussions of Cain's 999 Plan

999 on Cain's Website and in an editorial in USA Today

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.

Phase 2, the Fair Tax:

• 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.

Discussion of pros, cons, and what the heck does it all mean [this section will get filled out over the weekend, if you care to stop back]:

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