The Tax Policy Center has done the math on Herman Cain’s 9-9-9 tax plan. And I’m sure you’ll be shocked to hear this, but it will be a massive tax cut for the wealthy and a not-quite-so-massive but still large tax increase for the middle class.
A middle income household making between about $64,000 and $110,000 would get hit with an average tax increase of about $4,300, lowering its after-tax income by more than 6 percent and increasing its average federal tax rate (including income, payroll, estate and its share of the corporate income tax) from 18.8 percent to 23.7 percent. By contrast, a taxpayer in the top 0.1% (who makes more than $2.7 million) would enjoy an average tax cut of nearly$1.4 million, increasing his after-tax income by nearly 27 percent. His average effective tax rate would be cut almost in half to 17.9 percent. In Cain’s world, a typical household making more than $2.7 million would pay a smaller share of its income in federal taxes than one making less than $18,000.
Herman Cain is, of course, a multi-millionaire. Quelle surprise.