Everyone should take a look at this whole article, also. I didn't grab the wealthy family part:
The 9-9-9 plan for an average household, and for a wealthy one
Before we get to the details, here’s the bottom line: Cain’s plan would increase the family’s tax bill by thousands of dollars.
Now, the details. Let’s start with the calculations for the current system. If you take the employer and employee side of the payroll tax, payroll taxes come to 15.3 percent of our hypothetical family’s $50,000 income.Final bill? $7,650 in payroll taxes. But that’s almost all they’re going to pay in federal taxes.
When it comes time to fill out their federal income taxes, they take the standard deduction ($11,400), plus four personal exemptions ($3,650 each), plus two child-tax credits ($1,000 each), which leaves them paying $766 in federal-income taxes.
Total tax bill? $8,416.
Cain’s plan, by contrast, acts like a 27 percent payroll tax with basically no exemptions. To understand why that is, read my earlier post, or, if you really want the details, see Kleinbard’s full
analysis. So here, too, the calculation is fairly straightforward: $50,000 x 27% = $13,500.
And that leaves us with simple subtraction. $13,500 - $8,416 = $5,084. That’s how much more a family of four with $50,000 in income and a very simple tax return would pay under Cain’s 9-9-9 plan.
!!.....................................And you can quote me on that !!
