Posts Tagged ‘999’

Herman Cain’s Tax Plan IS a Game, After All

October 17, 2011

Herman Cain's Tax Plan IS a Game, After All

Critics, especially those who can do math, think Herman Cain’s “9-9-9” tax plan is just a catchy slogan. Jon Huntsman thinks it’s the price of pizza. Nonsense. The 9-9-9 plan is just a game. A computer game. Sim City 4, to be precise.

As reporter Amanda Terkel first realized, when players participating in the city simulation begin planning taxes for their mock municipality, the game setup starts commercial, industrial, and residential taxes at 9% rates, remarkably similar to Mr. Cain’s. Gamers use the 9% defaults to figure out rates that will actually work because, even in cyberspace, “9-9-9” doesn’t cut it.


Herman Cain’s Tax on the Poor

October 12, 2011

Herman Cain's Tax on the Poor

Republican presidential hopeful Herman Cain has been getting lots of attention for his bumper-sticker-sized economic policy, the All Meat Combo Original Jumbo  “9-9-9” tax plan. Easy to remember; easy to misunderstand the burden it would place on working people and the poor if the government was wacky enough to implement it.

Here’s where those “9s” in the slogan come from. Throw out the unwieldy U.S. tax code, then replace it with a 9% tax on corporate profits, 9% on personal income, and a 9% tax on consumption.

What’s a “consumption tax?” A 9% federal sales tax or VAT on top of your local sales tax. If you live hand-to-mouth, you would pay 9% on 100% of your income as you earn it, then another 9% on what’s left of those dollars as you spend them to cover your family’s expenses. Result: Americans who earn the least would pay the most in taxes.