Cato Institute looks at Herman Cain’s 9-9-9 plan (Republican Debate 10-19-11 Part 4 and 5 video clips)

Cato Institute looks at Herman Cain’s 9-9-9 plan

pt 4

pt 5

Herman Cain has a lot to say about his 9-9-9 plan as do others in the debate above. I also enjoyed Cain’s comments on the Occupy Wall Street crowd in the clips above. Below is closer look at it.

Cain 9-9-9: Huge Tax Haul from VAT

Posted by Chris Edwards

The Herman Cain campaign released details of the revenue expected to be collected from his 9-9-9 tax plan. Here are the estimates for 2010:

  • $701 billion from the 9 percent personal income tax.
  • $753 billion from the 9 percent retail sales tax.
  • $863 billion from the 9 percent business VAT.

Yikes! By far the largest tax haul under the Cain plan would be from the business VAT—a tax which would be hidden from most voters.

By the way, the Cain business tax is not a tax on “corporate income,” as some media stories are identifying it. The new revenue data makes it clear that it is a tax on all value added by all businesses in the nation—corporate, partnership, and proprietorship.

Sorry Mr. Cain, I think your tax plan gives the federal government far too much room to grow in coming decades as entitlement cost pressures increase. I’d suggest dropping 9-9-9 and going with my 15-15-15 tax plan. After that, you could move on to proposing a detailed plan for spending cuts, as candidate Ron Paul has delivered.

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