Is there a problem with that?
Okay, series.
This analysis buys into the myth that lowering taxes does not raise revenues.
But lowering taxes does raise revenues. That is all. See the Laffer Curve.
It's much more complicated than taking the tax rates under the present system and the tax rate under 999 and slapping them upon a static "income" number.
When tax rates are lower, as they would be under 999, incomes are higher, even if the entity (individual or corporation) earned exactly the same as under the previous system.
If less income is sheltered, as it would be under 999, again, incomes are higher.
Tax rates affect behavior, which affects income subject to tax.
IOW, we can't have this discussion without recognizing that (1) the definition of "income" subject to tax will change under 999; (2) the amount of revenue will increase when taxes are lowered because, no matter how counterintuitive it is, that is, in fact, just the way it is.
Even Cain has called his 9-9-9 scheme ‘revenue neutral’. So if we believe Cain his plan will leave us with deficits of between $1 trillion at best and $2 trillion at worst. Yet nowhere on his website does Cain identify the cuts he will make in order to balance the budget. Just vague blathering about ‘making tough decisions’ and ‘nothing off the table’. Well if Cain is the visionary that everyone seems to think he is then he should be able to do better than that.
The point about revenue being cut in half is that it leaves something out of the equation. That something is social security and med. They are the amount that is left out.
Now, remember that Cain wants the Chilean model social security. That’s 10-20% of an income.
Therefore, we have 9-9-9+(10-20%) Then the revenues are the same again. So, that’s the real plan.
However, they won’t get that far. They will implement only the 9% sales tax, and then we’ll have it plus our present income tax. What is that: 28% + 9% sales tax + 14.6% social security + 3% med?
Adding a sales tax BEFORE you get rid of the income tax is simply a slick way to raise taxes.