CNBC seems to be rather smitten with Cain as he has won some unexpected straw polls and his numbers have risen nationally. At present he is now ahead of presumed main challenger to Romney, Rick Perry.
Mr. Cain, who has had some very nice things to say about low income Americans and the Occupy Wall Street protests — like if you’re not rich it’s your fault and that the protesters are “un-American” — now claims that his tax proposal will benefit these same low income Americans who are so ignorant of their own interests.
His proposal-described apocalyptically enough as the only one that will “blow up the tax code” — he dubs the 9-9-9. Basically, it’s a flat tax. He claims that it’s not regressive which means that he is mistaken on at least one count. As a flat tax is inherently regressive it can’t be both flat and not regressive.
His rationale for saying it isn’t regressive is fairly spotty too it must be said, “No, it is not regressive,” he said. “First of all, by putting it on sales tax — that third ‘9’ — we are going to pick up revenue that we are not getting today. That helps to lower the rate for everybody including the people that are making the least amount of money.”
For his fully laid out proposal see http://www.hermancain.com/999plan
A sales tax, “that third “9” ” how does a sales tax make his plan not regressive? A sales tax is by definition a regressive tax. He also claims that it will raise revenue. Sure, it’s gonna raise revenue while lowering the corporate tax rate to 9 percent and eliminating the capital gains tax. The usual supply side delusions.
Only thing missing from his plan is a proposal to square the circle.
Cross-posted at Diary of a Republican Hater