Ron Paul: Cain’s 9-9-9 tax plan too regressive
Republican Rep. Ron Paul of Texas said Tuesday on CNN that businessman Herman Cain’s 9-9-9 tax plan was “dangerous” and would place a burden on the poor.
Cain’s plan would eliminate the current individual income tax, corporate income tax, payroll tax, and estate and gift tax, and replace them with a 9 percent national sales tax, a 9 percent business flat tax, a 9 percent individual flat tax.
“What 9-9-9 does is compromises in the worst way,” Paul said before the CNN Western Republican debate. “He gives you a sales tax and a flat tax. And opens up the door to a value added tax.”
“I think it’s very, very dangerous and the way I see it, I don’t think it is going to tax those who have bigger incomes. It’s a regressive tax. People are going to get a 9 percent sales tax and they don’t even have jobs right now? So I think because it is so regressive, if we ever came close to it, it would be very, very unpopular.
“I think the more people know about it, the more questions will be asked.”
According to an analysis by the Tax Policy Center, the 9-9-9 tax plan would give every American making more than $1 million an average tax cut of $455,000. Americans with incomes below $200,000, in contrast, would see their taxes increase under the plan.
Watch video, uploaded to YouTube, below: