Jared Bernstein on Herman Cain's 9-9-9 Tax Cut for the Wealthy
I debated Herman Cain’s economic advisor, Rich Lowrie, last night on the Larry Kudlow Show. A key point here is that the plan, which Bruce Barlett calls a “distributional nightmare,” radically shifts the tax burden from high-income households to everyone else. I focused on the median household, and Lowrie either doesn’t understand the implications of the plan or he’s deliberately misrepresenting it.
For a $50K household, married couple, two kids, all income from earnings and standard deductions, the current tax burden is $8.3K. Under 9-9-9, that would grow to $13.5K, an increase of over $5,000 (hat tip: CCH, BS). The WaPo fact checker came to a similar conclusion. E Klein too. More at source.