which would replace all current taxes (including the payroll tax, capital gains tax, and the estate tax) with 9% business transaction tax; 9% personal income tax rate, and a 9% federal sales taxThis sounds great at first glance. However it might not be as attractive as it sounds. There's a great graph on the "Effect of proposed '9-9-9' tax reform plan on average tax liability. Basically, the graph shows only the top 20% being better off. The graph is well worth a look.
Saturday, 29 October 2011
9-9-9 may not be so good for the other 90%
US Presidential candidate Herman Cain has put forward a "9-9-9" tax reform plan: