What’s the matter with Iowa?
by digby
The same thing that’s still wrong with Kansas. Here’s the problem:
Two-thirds of likely Iowa Republican caucusgoers earning less than $50,000 a year believe they personally would be better off or in the same situation under Herman Cain’s 9-9-9 tax plan, The Des Moines Register’s new Iowa Poll shows.
Research-group reviews of the plan have found that most families making $100,000 or less would pay thousands of dollars more each year.
“The larger point is that people don’t really understand what the 9-9-9 plan actually is, and they’re assuming incorrectly that they may not pay one or any of these taxes,” said Joe Rosenberg, a research associate for the Tax Policy Center, a group based in Washington, D.C., that bills itself as a nonpartisan economic research institute.
Cain’s plan would eliminate the current individual income tax, corporate income tax and payroll tax and replace them with a new 9 percent national sales tax, a 9 percent business tax and a 9 percent income tax. Estate and gift taxes would be eliminated.
The Tax Policy Center estimates that the three taxes combined would be the equivalent of a 25.38 percent national sales tax. Because lower-income families spend a larger percentage of their income on tangible goods, they would be affected disproportionately.
The bottom line: A family with an income level of $40,000 to $50,000 would pay $3,407 more a year in taxes, while families making $500,000 to $1 million a year would pay on average $80,315 less, according to the Tax Policy Center.
There is a very long way to go to get people to believe that. It’s like telling them that God didn’t write the Constitution.
Of course, there’s this, which scrambles everything.
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