Thursday, October 20, 2011

Stunning 9-9-9 Analysis, If True!

If like me, you've been wondering about the impact of Cain's 999 proposal, here is an eye-opener:

"Visualizing Herman Cain's 9-9-9 plan to redistribute wealth from the poor to the rich

"By Cory Doctorow at 10:02 pm Wednesday, Oct 19

"Maybe you've heard about Herman Cain's 9-9-9 plan for America: 9% sales tax, 9% income tax, and 9% corporate tax, and wondered how it would play out in the real world. Here's a chart that illustrates the answer neatly (click for full, farcically long-ass version): the poor will pay a little more (or a lot more, relative to their income), and the rich will pay a lot less, and the very rich will pay so much less that it takes 9403 vertical pixels to express how much they'll save. (Thanks, Fipi Lele!)"

I truncated the bottom of the graph to make it readable -- it extends down to a reduction of $1,350,000 for the top .1% and a reduction of $238,000 for the top 1%. While it increases the tax on the bottom 80% of the households. I've known for a long time that sales taxes have a bigger impact on the poor, but this is huge. This is income redistribution of a type that the super-rich could love. I'm waiting with baited breath to see a rebuttal.


9-9-9 in One (Really Long) Graph [jaredbernsteinblog.com]

http://craphound.com/images/Average-tax-change-from-9-9-9-plan-10-18-2011-OPTfull.jpg




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