9-9-9

No, it's not the mark of the beast, upside down, it's the latest Republican miracle to save the economy.

Finally one of the Republican candidates has come up with an economic plan.  That would be Herman Cain, with his 9-9-9 proposal.  That consists in setting the personal and corporate tax rate for everyone at 9%, and making up the difference with a 9% sales tax on everything you spend, including food.

Now, of course, it has already been demonstrated that, like everything the Republicans do to the economy, this ludicrous proposal would balloon the deficit without any benefit to the nation at all.  But even if it was revenue neutral, this idiotic plan would be nothing but a huge giveaway to the rich, like everything Republican.  Here's a quick little bit of arithmetic, based on the following table of current tax rates:  Note that this is based on income after deductions:

FEDERAL INCOME TAX BRACKETS
$0-$8,375                      10% of the amount over $0
 $8,376 -$34,000      $837.50 plus 15% of the amount over $8,375
 $34,001 -$82,400      $4,681.25 plus 25% of the amount over $34,000
 $82,401 -$171,850      $16,781.25 plus 28% of the amount over $82,400
 $171,851 - $373,650      $41,827.25 plus 33% of the amount over $171,850
 $373,651 and up     $108,421.30 plus 35% of the amount over $373,650

So here we go.  Let's compare a person who makes $34,000.00 and a person who makes ten million dollars, after deductions:

                                              Old Tax      9-9-9 Tax    Net Savings
$34,000 income                    $4681         $3060          $1621

Out of that $1621 savings, this person would have to pay a 9% sales tax on everything they purchase, which would absorb virtually all of their supposed tax benefits, leaving them with a net tax cut of a couple hundred dollars if they are lucky.  Now, the rich guy:


                                            Old Tax         9-9-9 Tax   Net Savings
$10 million income            $3,742,873    $900,000    $2,842,873

Well, there you go.  The rich guy does pretty well out of Herman Cain's proposal, huh?  His taxes are cut by over 75%.  The ordinary guy?  Tough luck, buster.   Take your couple of hundred and go home. Bet you feel a whole lot better off now.

I have always been staggered at the notion that people would fall for the endless flat tax proposals that are a stock in trade of Republican economics.  How can it escape their attention that, if we all pay the same tax, the guys with the high tax rates are going to make out like bandits, and the rest of us are going to pick up the tab, one way or the other.  The dishonesty and indifference to the welfare of average Americans revealed in Cain's proposal is breathtaking, yet it has propelled him today to the number one spot in the Republican contest to see who gets to be the next person to lead the destruction of our economy.

I doubt that Cain will last that long with the Republican base- he is, after all a...well, you know.  But, of course, whichever corrupt tool they choose will be just as dedicated to absolving the rich of their responsibility to the country.  What a nation, huh?

Added:  It just occurred to me that the $2.8 million tax cut that the rich guy in the above example would get every year is more than the entire lifetime earnings of the other guy.  There's fairness for you.