We’ll have to see if this is an exemption (I am starting to not fully trust Hot Air’s reportage on Cain’s plan) or a standard deduction available to everyone.
Most of these types of tax reform plans had the first say $20,000 of income as a standard deduction for EVERYONE.
Yes, this would make the plan 909 for some people, the very (can we say “truly”?) “poor.” But the overall concept would still be that everyone pays taxes on income after the same standard deduction and at the same rate.
I know the flat tax plans I’ve seen had the tax on everything over x amount, depending on the author. That may be doable, but I guess we’ll have to keep the army of IRS agents to go after the “tax cheats” on whatever exemption(s) are allowed.