Herman Cain's '9-9-9' plan: What is it, and how would it affect taxpayers?
NBC’s Domenico Montanaro does the math.
So what is it, and what does it do? It would completely change the tax structure in the country and replace it with a:
– 9% income tax,
– 9% national sales tax, and
– 9% corporate income tax
Deductions, including the popular mortgage deduction, would be eliminated. There would be an exception, however, for charities.
It eliminates the capital-gains tax, which benefits those who make money in the stock market. And it eliminates the payroll tax, which funds Social Security.
Because of the current progressive tax system, the poor, working class, and many considered middle class pay zero (or close to zero) in income tax. They account for about 40% of the country.
The non-partisan Tax Policy Center is readying a report on Cain’s plan, though it is waiting for more details from the campaign. But it has come to some conclusions already. …