Republican candidate Herman Cain is at the top of the heap in the race for the presidential nomination due largely to his 9-9-9 tax plan. If his plan would be the law of the land today, here is what the federal tax liability would be for a retired couple with $30,000 annual retirement income:
• 9 percent on gross income would equal $2,700.
• 9 percent on corporate income would equal zero.
• 9 percent on national sales tax would equal $1,350.
Total federal tax would be $4,050.
This family also pays state sales taxes, car license taxes, gas taxes, hunting license taxes, utilities taxes. That would leave the family with $24,000 disposable income to pay for rent, loan payments, food, gas, insurance, etc.
Yes, Cain’s 9-9-9 tax plan would simplify things, and would surely benefit some fortunate people, but certainly not retired people on fixed incomes and other low-income people.