666 999 Will Raise Taxes on 84% of Americans

Pizza man and presidential hopeful Herman Cain has a plan for America.  Ask him.  He'll tell you about it.  He calls it 999, which is actually just 666 upside down.  He claims his plan is so fantastic and will be so great for America that people will be begging for it.  Essentially, much like SimCity 4, Cain's Freedom Fighting Plan will create a federal tax rate for everything: 9% on personal income, 9% on sales tax, 9% on business profits.  Wiola, America is free again!

As we've discussed before, Cain has admitted some people's taxes will go up if his new plan is enacted.  The key word in all this is "some."  Who are the some that will see higher taxes?  As the Tax Policy Center notes, 84% of Americans will see a tax hike if 666 takes effect.

As you can see, people who make less money have a higher tax burden under 999.  But isn't making the tax code uniform for everyone a FAIRer system?  Not really.

People who make less money spend more of their money.  They don't spend more money, just a higher percentage of their income gets spent as compared to people who make a lot of money.  Someone who makes a million dollars actually makes enough money to save some of their income.  But someone who makes $40,000 doesn't and is probably spending almost every penny that comes in.  The person spending the higher percentage gets their income taxed two and three different times under Cain's plan and thus carries a higher tax burden.

The $40K person gets it taxed at 9% when they make it.  Another 9% when they spend it.  And will get taxed again to make up for the businesses who are simply passing their 9% tax on to consumers, cause you know they will.  The person making $40K will see their taxes go up about 10% under Cain's plan.  In all, 84% of Americans will see an increase in their taxes anywhere from 2% to 20%.  Only people making over $200,000 will see an actual tax cut.  Seeing how about 85% of Americans make less than $200K, Cain's plan is nothing but a tax increase on the Middle Class and a huge tax cut for the wealthy.  No wonder he flipped the 666 upside down.