Friday, October 14, 2011

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

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