Possibly, ...
...but this is the side of 9-9-9 that the Media will show:
Consider two people: one who earns $30,000 a year and spends all of it by necessity, and one who earns $500,000, spends $100,000 of it and saves or invests the remainder. Under Cain's plan, the first person would pay an 18 percent tax on that $30,000: nine percent in income tax and nine percent in sales tax. But the second person would only pay about 11 percent in taxes on their $500,000 income: nine percent in income tax and 1.8 percent in sales tax, since only 20 percent of their income would be subject to the sales tax, and savings and investments wouldn't be taxed at all.
"Businesses will tax all wages, because wages don't seem to be deductible," Roberton Williams, a senior fellow at the nonpartisan Urban Institute, told IBTimes. "People, when they receive those wages, will pay another 9 percent tax on it, and then when they spend it, they'll pay another nine percent."
That is a 27 percent effective tax on wages -- but a zero percent tax on income from investments and capital gains.
"The obvious winners are the big guys who get a lot of their income from capital gains, and capital gains would not be taxed at all," Williams said. But the majority of Americans who make their living from wages, not capital gains, would be hammered under the 9-9-9 plan.
Consider two people: one who earns $30,000 a year and spends all of it by necessity, and one who earns $500,000, spends $100,000 of it and saves or invests the remainder. Under Cain's plan, the first person would pay an 18 percent tax on that $30,000: nine percent in income tax and nine percent in sales tax. But the second person would only pay about 11 percent in taxes on their $500,000 income: nine percent in income tax and 1.8 percent in sales tax, since only 20 percent of their income would be subject to the sales tax, and savings and investments wouldn't be taxed at all.
"Businesses will tax all wages, because wages don't seem to be deductible," Roberton Williams, a senior fellow at the nonpartisan Urban Institute, told IBTimes. "People, when they receive those wages, will pay another 9 percent tax on it, and then when they spend it, they'll pay another nine percent."
That is a 27 percent effective tax on wages -- but a zero percent tax on income from investments and capital gains.
"The obvious winners are the big guys who get a lot of their income from capital gains, and capital gains would not be taxed at all," Williams said. But the majority of Americans who make their living from wages, not capital gains, would be hammered under the 9-9-9 plan.
Herman Cain's 999 Plan: Will It Work? Experts Speak Out - International Business Times