Facing South

INSTITUTE INDEX: How Cain's 9-9-9 tax plan would help the rich and hurt the rest

Under Republican presidential candidate and millionaire Georgia businessman Herman Cain's 9-9-9 tax plan, percent tax rate that businesses would pay on gross income minus purchases from U.S.-located businesses, capital investment and net exports: 9

Percent tax rate that individuals would pay on gross income minus charitable deductions: 9

Percent tax rate that consumers would pay through a national sales tax: 9

Under Cain's plan, percent of U.S. households that would pay more in taxes than they do now: 84

Percent of U.S. millionaires who would pay less in taxes under Cain's plan: 95

Average tax increase for a middle-income household making between about $64,000 and $110,000 under Cain's plan: $4,300

The average tax decrease for a top-income taxpayer making more than $2.7 million a year under the plan: $1,400,000

Current federal tax rate for a middle-income household: 18.8%

Effective federal tax rate for such a household under Cain's 9-9-9- plan: 23.7%

Percent by which a top-income taxpayer's average effective tax rate would be cut under Cain's plan: almost 50

Under Cain's plan, percent change in after-tax income for households earning less than $10,000: -18.2

For households earning $10,000 to $20,000: -16.4

For households earning $20,000 to $30,000: -13.7

For households earning $500,000 to $1,000,000: +16.4

For households earning over $1,000,000: +30.5

Average tax cut that Cain's plan would provide to millionaires: $487,300

Under Cain's plan, percent tax rate that would be paid on capital gains, the profit made from the sale of stocks, bonds, precious metals and property: 0

Minimum number of stock sales Cain made over the past year and a half: 12

Amount he made through those sales: $230,000-$1,300,000

Cain's total net worth, according to financial disclosure statements: $1,850,000-$4,000,000

(Click on figure to go to source. Many of the items in this index were drawn from an analysis of Cain's tax plan released this week by the Tax Policy Center, a joint venture of the Urban Institute and Brookings Institution. Photo of Cain speaking at the Ames Straw Poll in Iowa by Gage Skidmore via Wikipedia.)

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