Cain's 9-9-9 Plan Would Cut Taxes For Millionaires; Raise Them For Poor
The first detailed analysis of Republican presidential candidate Herman Cain's 9-9-9 tax plan found that it would cut taxes for Americans making $200,000 or more a year and raise taxes for those making less than $200,000 a year.
The analysis was released today by the independent Tax Policy Center, a joint venture by the Brookings Institution and the Urban Institute.
Cain's 9-9-9 plan, which would institute a flat 9 percent business, individual and national sales tax, has been credited for catapulting the former Godfather's Pizza CEO to the top of the Republican race.
The Tax Policy Center found that if the plan were instituted, those making more than $1 million would receive a $455,000 (15 percent) tax break, while those making $20,000 to $30,000 would see a $3,800 (15 percent) tax increase.
Derek Thompson of The Atlantic put together a graph with the information from the Tax Policy Center. It shows the percentage change on effective tax rate by annual income: