The Washington Times had an interesting column about presidential candidate Herman Cain and his tax plan called 9-9-9. Cain’s plan calls for a 9% personal income tax, 9% corporate tax and a 9% national sales tax.
A flat income tax of 9 percent would bring in about $1.12 trillion. Corporate taxes at 9 percent ? about $270 billion. A national 9 percent sales tax, about $378 billion.
That?s only (only!) $1.768 trillion, well short of what this year?s tax revenue of $2.16 trillion. But wait. With some hefty growth (and using a projection not far above the Obama administration?s own estimates), the 9 percent income tax would bring in about $1.4 trillion, corporate taxes an estimated $321 billion, and the national sales tax about $450 billion. Boom ? $2.17 trillion.
Sure, that?s well short of the $3.8 trillion Mr. Obama wants to spend, but it does at least match up with current revenue. And, hmm, maybe America should spend less, and, this is crazy, try to match its expenditures with its revenues.
Cain had a great line in a recent debate:
?If 10 percent is good enough for God, then 9 percent ought to be good enough for the federal government.?
Agree or disagree with Cain’s plan, I like the fact that he is actively engaging Americans about the state of our current tax code with his own ideas. Something I would like to see more of from both parties and all candidates rather than the silly bickering that seems to take place every election cycle.
Let’s stop arguing about semantics and start working on solving the problem.
The article concludes:
And it?s becoming more clear that next November, voters won?t like the president?s own 9 percent plan ? 9 percent unemployment. Maybe Mr. Cain?s is just a bit better.