Thursday, Oct. 27, 2011 | 2:01 a.m.
Republican presidential candidate Herman Cain offers a 9-9-9 (sales tax, individual tax, corporate tax) system as a solution to our complex and unfair tax system, which involves deductions and exemptions. When he was questioned about the unfairness to poor people of a 9 percent sales tax on everything we buy, Cain stated that the 9 percent sales tax would be partially offset by eliminating the 4.2 percent Social Security withholding tax as well as the 1.45 percent Medicare withholding tax. He further stated that elimination of the employers’ 7.65 percent portion of these withholding taxes should result in lower prices.
What I have not heard discussed is the fact that Mr. Cain’s analysis appears to presuppose elimination of the Social Security and Medicare programs. I wonder how many of his supporters will agree with getting rid of these essential programs in order to simplify the tax system?