I originally fell for the 999 plan. I thought it was a good simple plan that would work. I thought that until I looked into it.

With this proposed plan the United States would adapt a tax increase on the poor and middle class and a tax break for the rich. “

If you have a family of four with an income of just under $50,000, they could end up paying more under the Cain plan. Currently, they are taxed around $3,850 in income tax. Under Cain’s plan, they would be taxed at 9 percent or pay $4,500.

That’s $650 more.

Although the family would save almost $4,000 in Social Security taxes, it would have to give up the child tax credit worth the same amount. Furthermore, it would pay an additional national sales tax of 9 percent on everything purchased, including groceries and clothes, which totals about $2,000.

That means under the Cain plan that family could end up paying $2,725 more.” http://abcnews.go.com/blogs/politics/2011/10/9-9-9-plan-would-almost-double-taxes-on-middle-class/

If this is to liberal of a source for you then here are more sources saying the same thing.

http://www.bloomberg.com/news/2011-10-12/cain-s-9-9-9-plan-raises-2-5-trillion-in-revenue-campaign-says.html

“Stretch also believes the 9 percent sales tax rate could feel like a tax increase on low income and middle class Americans, unless it includes exemptions for essentials like food, medicine, and schoolbooks. “When you have a sales tax and a flat tax on wage incomes, that tax plan would likely move more tax burden to relatively low income and middle class taxpayers,” he said. http://www.accountingweb.com/topic/tax/cains-popularity-swells-analysts-examine-9-9-9-tax-plan

The plan is sparse on details also. This is the whole plan:

Phase 1 – 9-9-9

• Current circumstances call for bolder action.

• The Phase 1 Enhanced Plan incorporates the features of Phase One and gets us a step closer to Phase two.

• I call on the Super Committee to pass the Phase 1 Enhanced Plan along with their spending cut package.

• The Phase 1 Enhanced Plan unites Flat Tax supporters with Fair tax supporters.

• Achieves the broadest possible tax base along with the lowest possible rate of 9 percent.

• It ends the Payroll Tax completely – a permanent holiday!

• Zero capital gains tax

• Ends the Death Tax.

• Eliminates double taxation of dividends

• Business Flat Tax – 9 percent of Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders.

o Empowerment Zones will offer additional deductions for payroll employed in the zone.

• Individual Flat Tax – 9 percent, Gross income less charitable deductions.

Empowerment Zones will offer additional deductions for those living and/or working in the zone.

• National Sales Tax – 9 percent.

This gets the Fair Tax off the sidelines and into the game.”

That is it that is the whole 999 plan. Very few details. So are there going to be any deductions? Without th em taxes are going up on the poor and middle class. But what most people do not realize is that the 999 plan is only a stepping stone. It is just a step towards the fair tax which is a tax totally based off consumption and nothing else. But I do find this line funny and rather odd-” I will begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax.” Has this ever worked and when has it been the job of the American President to educate the American people?

So let me recap. I am not in favour of the 999 plan. It appears to be thin on the details and would raise taxes for the poor and middle class, it is just a stepping stone to a plan we have to be educated on by our new president, if he is still president when we move on to the fair tax, and it appears to be, as of now, poorly thought out.

Bart Wallace

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