Friday, October 21, 2011

CAINS 9-9-9 Plan is a 16 year old Tax Plan

Interesting paper in Politico this A.M. from Ben Smith on Herman's 9-9-9 tax plan....or 9-0-9 as its now known.

It seems the Plan is a recycled 16 year old plan first proposed in 1994 by Gary Robbins and his wife for the Institute for Policy Innovation. Herman's plan uses 30 verbatim paragraphs and 2008 data to replace the 1994 data. Despite the passage of 16 years and drastically different economic times, the 1994 solutions are IDENTICAL to what is being proposed by Cain. (Unless Smith and Robbins and I have all misread the plan, which all of Cain's critics seemingly have done).

Anyway, all of the policy assumptions are exactly the same in 2011 as in 1994 despite the vastly different economic landscape and far lower tax burden. The only real change, it seems , is that the 9-9-9 plan uses an assumption of far more business tax revenue than 1994 because it DISALLOWS business deductions for wages and salaries. The obvious impact on businesses would be far fewer employees and far lower salaries and wages


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1 comment:

Anonymous said...

It doubles to tax burden of the poor? Might seem like chicken feed to Rush, Sean and others but we do need to balance caution with greed because it means more will end up on the hind tit of uncle Sam!