Former Godfather’s Pizza CEO and Republican presidential candidate Herman Cain on Sunday disputed a Washington Post report that his “9-9-9” tax reform plan would raise taxes on poor and middle-class Americans, but acknowledged that some would see a tax hike under the proposal.
“Some people will pay more, but most people will pay less,” Cain said during a lengthy interview on NBC’s “Meet the Press.” He said that “the people who spend more money on new goods” would see the amount of taxes they pay rise under the plan, which would replace the current tax code with a nine percent corporate income tax, a nine percent personal income tax and a nine percent national sales tax. The elderly would see their taxes fall, Cain said, because the capital gains tax would be replaced and and “tax on dividends and tax on income generated from investments, you only pay once.”
Cain predicted that consumers will see the price of goods decline under his plan due to competition. He said that the ‘9-9-9’ proposal would replace a series of “invisible taxes built into everything we buy.”
The candidate also dismissed a Wall Street Journal editorial that claimed the plan’s national sales tax “would mean a tax on goods of 17 percent or more in many places” when combined with state and local taxes.” Cain explained that state taxes “will remain the same, but “federal taxes, in most cases, are going to go down.”
When asked how he intended to get his plan passed when there is little agreement in Washington about tax reform, Cain said he would first ”throw out the current tax code” and because there is a “huge amount of public support” for the proposal, “this is what is going to get it passed.”
“Simplicity and public support ... is what’s going to allow the public to help put pressure on Congress to get this passed,” Cain said. “That’s my plan.”