Cain

The Cain people have now released more information about his tax plan called 999 and it would hurt the poor people because it would get rid of the child tax credit and the earned income credit and these provide benefits to lower income people. For example a family of four with $30,000 of income receives an additional $7,000 in tax refunds even though they pay no income tax. Under Cain’s plan this family would not have to pay any payroll tax which would save them $2,300 but they would lose the $7,000 plus they would have to pay 9% national sales tax on all new items they purchase. Unless some changes are made to this plan I don’t think it will be acceptable to most people.
I think what is going to happen is to follow the Reagan plan of getting rid of loop holes and lowering the rates. Maybe one day something along the line of what Cain is proposing might have a chance but not now.