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RE: Yep the first $20K is not taxed....always has been that way so why the surprise?

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The problem is people never bother to READ his plan which is on his website.

This has always been part of his plan. Now that he articulates it, we see former supporters leaving his bandwagon — proof positive that these former supporters never bothered to try to understand what he said.

CUT AND PASTE FROM HIS WEBSITE:

http://www.hermancain.com/999plan
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Phase One

Our current economic crisis calls for bold action to truly stimulate the economy and Renew America back to its greatness. The 9-9-9 Plan gets Washington D.C. out of the business of picking winners and losers, using the tax code to dole out favors, and dividing the country with class warfare. It is fair, simple, transparent and efficient. It taxes everything once and nothing twice. It taxes the broadest possible base at the lowest possible rates. It is neutral with respect to savings and consumption,capital and labor, imports and exports and whether companies pay dividends or retain earnings.

9% Business Flat Tax

* Gross income less all purchases from other U.S. located businesses, all capital investment, and net exports.

* Empowerment Zones will offer deductions for the payroll of those employed in the zone

9% Individual Flat Tax.

* Gross income less charitable deductions.

* Empowerment Zones will offer additional deductions for those living and/or working in the zone.

9% National Sales Tax.

* Unlike a state sales tax, which is an add-on tax that increases the price of goods and services, this is a replacement tax. It replaces taxes that are already embedded in selling prices. By replacing higher marginal rates in the production process with lower marginal rates, marginal production costs actually decline, which will lead to prices being the same or lower, not higher.

Economic Impact

* According to former Reagan Treasury official Gary Robbins, of Fiscal Associates, the 9-9-9 Plan will expand GDP by $2 trillion, create 6 million new jobs, increase business investment by one third, and increase wages by 10%.