The Tax Policy Center has conducted a more in-depth analysis on how Herman Cain’s 9-9-9 plan would redistribute the federal tax burden. It found that 83.8 percent of all taxpayers would experience a tax increase, and in some cases that increase would be substantial.
For example, those making less than $10,000 a year would see their after-tax income fall by 20 percent. Those making $40,000 to $50,000 a year would see their after-tax income fall by 11.1 percent.
Conversely, those making between $500,000 and $1 million would see their after-tax income rise by 11.1 percent. Those making more than $1 million would see their after-tax income rise by 22.4 percent.
But remember, as conservative economist Christine Ries of Georgia Tech reminds us, this is a good thing. “If you’re going to put a good tax reform proposal together, it’s going to be regressive. People are going to have to accept that.”
Here’s a chart, based on the TPC analysis, documenting how much more or less each income group could expect to pay under the 9-9-9 plan. As you may notice, this chart does not include the impact on taxpayers with incomes of more than $500,000, for reasons explained below.
The chart above does not contain figures for higher-income levels because those numbers are so huge that they throw the entire illustration out of scale. For those making more than $1 million, for example, the average savings under the Cain plan is $455,247. So figures that large had to be given a chart of their own.
Now, maybe Americans are fine with all this. Maybe the conservative Republicans who have rallied to Cain’s side, making him the co-leader in the nomination process, think this is a wonderful idea that would really turn this nation around.
Me, not so much.
– Jay Bookman