April 24, 2014

What’s Not To Like? Cain’s 9-9-9 Plan Hits Poor, Blows Up Deficit, Threatens Entitlements

October 7, 2011
Talking Points Memo

Excerpt

But as Diane Lim Rogers of the fiscally hawkish Concord Coalition notes, Cain's plan is exactly what youdon't want to do in a weak economy. After all, if your a middle class worker, you'd pay 9 percent on all your income and 9 percent on your purchases which in lower and middle brackets constitute a significant percentage of your earnings. And even that doesn't count state sales tax.

"It's a cute little gimmick, but it's not an overall 9 percent effective rate," she said. "This kind of proposal would be bad for coming out of a recession. If you're trying to stimulate demand, you should encourage folks to buy goods and services. This proposal increases burdens on low income households and lessens demand."