"Leave it to a pizza guy to come up with the $9.99 deal. Wait, sorry, that’s the 9-9-9 deal. And former Godfather’s Pizza CEO Herman Cain has made the proposal the centerpiece of his 2012 campaign for president.
Simply put (wait, sorry again, it is simple), the plan calls for setting the personal income tax, including Social Security and Medicare, at 9 percent for everyone; reducing corporate taxes to 9 percent; and establishing a new national sales tax of 9 percent.
Using stats compiled by the University of New Mexico’s Bureau of Business and Economic Research, it’s possible to quantify what his plan would bring in. A flat income tax of 9 percent would bring in about $1.12 trillion. Corporate taxes at 9 percent - about $270 billion. A national 9 percent sales tax, about $378 billion.
That’s only (only!) $1.768 trillion, well short of what this year’s tax revenue of $2.16 trillion. But wait. With some hefty growth (and using a projection not far above the Obama administration’s own estimates), the 9 percent income tax would bring in about $1.4 trillion, corporate taxes an estimated $321 billion, and the national sales tax about $450 billion.
Boom - $2.17 trillion."
[Washington Times]
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