If Cain's plan morphed into something like that I would be all for it.
He needs to dump the sales tax and the zones.
Yes. That would have been the way to go.
Keep it 999, but set a standard deduction that is the same for everyone.
Yes, they would still hollar this “helps the rich,” but they couldn’t say it “hurt the poor.”
And the “poor” would still have to pay sales tax like everybody else.
A universal prebate would do that. Say someone was the individual poverty level was set at 20K. If everyone received an $1800 check (more for couples and families), including the rich, the poverty level sales tax would be prepaid.
Of course, giving everyone money might require a slightly higher level of initial tax... 10-10-10... but it would answer your issue without the necessity for record-keeping as to income, which is one of the problems with our current IRS-driven system.