Okay so if you've been following politics lately then I'm sure you've heard of Herman Cain's "9-9-9 Tax Plan". Essentially it is a fair tax plan in which the business flat tax is 9%, individual flat tax is 9% and sales flat tax is 9%. Everyone gets taxed at the same rate and we all win. Sounds pretty simple and straight forward right? Wrong.
Actually under this plan the brunt of the taxes will still be paid by lower income households. While the full details of this plan have not been revealed, going off of face value lower income homes that are usually exempt from taxes (46% last year) will now pay 9% while people that make over $1 million annually will see their tax contribution lower from an average of 18% to 9%. Essentially the rich will pay less while the poor will pay more. now you tell me how this is fair? Not to mention the sales tax will increase to 9%, on top of the current state and local sales tax, means that consumer goods will cost more. you know those nice credits that we get like earned income tax credits or child tax credits? yeah, those are as good as gone with this plan. Everything is a strict 9% across the board.
now this is not to say that this plan cannot work somehow. The full details of the plan have not been revealed so it may be more sophisticated then it seems on the surface. As of now this plan is shown as a way for the rich to remain rich while the poor pick up the slack. For more info on Herman Cain's 9-9-9 plan you may visit the following sites:
Politicofact.com
NYtimes.com
Hermancain.com
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