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9-9-9 tax plan may never be implemented, but certainly raises debate on US VAT

25 October 2011

Matthew Gilleard - ITR


Republican Herman Cain has adapted his 9-9-9 tax code proposal to allow for exemptions. The simplicity of the 9-9-9 plan, with its uniform rates and lack of exemptions, was previously the defining aspect of Cain’s proposal, but recent opposition has shown the presidential candidate that flexibility is required.

Cain’s plan

Claiming to tax the broadest possible base at the lowest possible rates, the 9-9-9 plan would replace the tax code with a flat 9% corporate tax, 9% personal income tax and 9% national sales tax. The plan is not likely to take hold, but it has already served to open up the discussion concerning the practicality of a VAT in the US.

Cain also wants to remove taxes on capital gains and on repatriated corporate profits.

“Our tax code is the 21st century version of slavery,” said Cain. “There are a lot of people in this country that have money, and capital gains is a wall between people with money and people with ideas.”

“Because taxes and regulations have gotten so bad, people with money don’t want to take risks. The American dream has been hijacked, but we can take it back,” he added.

Cain’s plan...



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