Originally Posted by brewmenn
12% is about what a "flat tax" would need to be to collect the same in taxes as we do know.
Cain plan calls for a 9% flat income tax and a 9% sale tax equaling 18%.
These would be implemented equally across the board, so those who now pay near or less than zero tax would see that much reduction in spending power.
My average effective tax rate is 11%. Right now we pay a 6% sales tax. SO essentially someone in my position would pay an additional 1% in tax. I think we could swing that. National sales tax, flat tax.. Personally I think its a great idea. Eliminate the need for the IRS and filing all together.
Now, certainly for the folks that have a 0 or net negative tax liability, any type of flat tax is going to hurt them. The entire situation is a catch 22, someone is going to get screwed. I personally believe everyone should be paying some amount of income tax. Regardless of level of income. I dont care if its just $1. Either that or the level of services provided by the Government via the taxpayers needs to shrink. It doesnt work and the proof is right in front of everyone.