The details of flat-tax proposals vary, of course. And capital gains (a major source of income for the very rich) would be tax free. Under Cain’s plan, fully 95 percent of households with more than $1 million in income would get an average tax cut of $487,300. We don’t know exactly what Perry will propose, but the non-partisan Tax Policy Center estimates that Cain’s plan (the only one out there so far) would lower the after-tax incomes of poor households (incomes below $30,000) by 16 to 20 percent, while increasing the incomes of wealthier households (incomes above $200,000) by 5 to 22 percent, on average. It raises taxes on the poor and lowers them on the rich. He’s been pushing the flat tax for years. Former House majority leader Dick Armey – now chairman of Freedom Works, a major backer of the Tea Party funded by the Koch Brothers and other portly felines (I didn’t say “fat cats”) – predicts this will give Perry “a big boost.” Steve Forbes, one of America’s richest billionaires, who’s on the board of the Freedom Works foundation, is delighted. Next week Rick Perry is set to announce his own version of a flat tax. Herman Cain’s bizarre 9-9-9 plan would replace much of the current tax code with a 9 percent individual income tax and a 9 percent sales tax.
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