Cain 9-9-9 Plan Challenged as Raising Taxes for Lower Income

http://www.bloomberg.com/news/2011-10-18/cain-s-9-9-9-plan-would-hit-lower-income-filers-analysis-finds.html

Republican presidential candidate Herman Cain’s so-called 9-9-9 plan will face renewed scrutiny after an independent analysis found it would cut taxes for higher earners while raising them for middle-income Americans.

The proposal would reduce the tax bill for almost 95 percent of Americans with cash income exceeding $1 million, according to the analysis released yesterday by the nonpartisan Tax Policy Center in Washington.

Almost 70 percent of taxpayers with cash income between $200,000 and $500,000 would pay less in taxes, the analysis said. Meanwhile, about 95 percent of Americans with cash income between $30,000 and $40,000 would pay more in taxes.

This analysis presumes the 2001 and 2003 tax cuts would be permanently extended.