The Herman Cain 9 9 9 tax plan is grabbing headlines as the 2012 presidential election looms nearer and occupy wall street protesters and ordinary citizens are demanding accountability from wall street executives. In the midst of these financial troubles, Herman Cain, one of the leading Republican candidates for president in 2012, has put forth his 9 9 9 tax plan as a platform on which he can run, but there is some question as to whether Cain’s tax plan is actually as fair as it seems at first glance.
The basis of the Herman Cain 9 9 9 tax plan is a flat nine percent tax rate. Individuals and corporations pay a flat 9% tax rate, and there is a set 9% sales tax.
Proponents of the 9 9 9 tax plan say that this could eliminate the current taxation system while at the same time eradicating the national debt, producing incentives for charitable contribution and business risk taking.
There are, however, some problems with the 9 9 9 tax plan. First, the plan would shift the taxation burden unfairly onto struggling families as opposed to those who can afford to pay the taxes. Although Herman Cain’s tax plan proposes a flat tax that has potential tax reductions for those living in designated areas- usually inner city areas that are designated “empowerment zones.” With details still sketchy, there is some concern that these “empowerment zones” will essentially become a new generation of ghetto. Besides, not everone who is poor or underprivilaged lives in the inner city.
While Herman Cain’s 9 9 9 tax plan is certainly ambitious, it seems clear that the plan isn’t particularly well thought out, indicative of a political strategy intended to gain support for Herman Cain as opposed to a real solution to the taxation problem.