Cain's 9-9-9 tax plan is simple: you'll simply pay more

[sinkingfeeling]

http://bottomline.msnbc.msn.com/_news/2011/10/13/8304334-cains-9-9-9-tax-plan-is-simple-youll-simply-pay-more

If you're a corporation, own a small business or count yourself among the richest Americans, you'll simply love it. If not, you'd simply pay a lot more in taxes.

But the odds are much higher that, when the public understands it, the vast majority of taxpayers will be horrified to realize they face a huge tax increase. That assessment comes from Bruce Bartlett, a senior official in the Reagan and George H.W. Bush administrations, who described the plan as a “distributional monstrosity.”

The reason the plan would hit poor people harder than the wealthy is also simple. The current tax code provides a series of deductions, credits and exemptions to ease the tax burden on all households, but they have a greater positive impact those at the bottom of the income ladder. As a result, some 38 percent of U.S. households pay little or no taxes. They would now suddenly be hit with what amounts to a tax bill that represents 27 percent of their income, according to USC law professor Edward Kleinbard, who published a paper this week calling the 9-9-9 plan “a terrific example of fiscal hocus pocus.”

Kleinbard also found that the plan would have some significant unintended consequences, including what amounts to a phantom tax on existing savings. For example, if you bought a new car with money you’d stashed in a savings account, accumulated from earnings, investment gains or interest or dividends that you’ve already paid taxes on, you’d now have to pay yet another 9 percent on the new car.

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http://bottomline.msnbc.msn.com/_news/2011/10/13/8304334-cains-9-9-9-tax-plan-is-simple-youll-simply-pay-more

[Bonhomme Richard]

1. I saw on FB that the plan was originally on Simm City...LOL.

http://www.huffingtonpost.com/2011/10/13/herman-cain-999-sim-city_n_1008952.html?ref=fb&src=sp&comm_ref=false#sb=1022557,b=facebook

[jwirr]

2. Last night Lawrence O'Donnell talked about a plan to end Social

Security hidden inside 9-9-9. There may be a lot more wrong with this idea than meets they eye.

[aint_no_life_nowhere]

3. Yes, We Can or Nein, Nein, Nein ?

The modern GOP, the party of nein!