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Federal Tax Article Review

Federal Tax Current Event The current Republican leadership race has seen Herman Cain as a front-runner for leadership of the Republican Party and thus, a potential presidential candidate for the 2012 election. One of the main components of his campaign is his proposal of a flat taxation plan for citizens of the United States, known as the "9-9-9" tax plan. This plan proposes to replace the current federal tax code with a flat taxation plan of 9% national sales tax, 9% personal income tax, and 9% corporate tax across the board for all Americans. In the article "Herman Cain's murky 9-9-9 tax plan," the author argues that this plan simply would not fiscally work out and that it would lead to an unfair distribution of the tax burden (Hitzlik, 2011).

Hitzlik argues that flat taxation plans such as the one proposed by Cain tend to not result with their positive intended outcomes, and he questions why such tax plans continue to be proposed when their effectiveness has not been appropriately demonstrated (Hitzlik, 2011). Furthermore, having every citizen pay the same percent proportionate to their income in taxes has not proven to be an effective solution for creating fairness and stimulating the

The discussion starts with a description of democratic tax program proposed in the 1930s that was intended to more fairly distribute wealth. The plan sought for taxes to essentially eliminate any income over $1 million and any accumulated wealth over $3 million. The money that would have been raised through this plan was intended to be directed towards guaranteed annual incomes, free college tuition, old-age pensions, and homestead grants (Hitzlik, 2011). Around the same time another proposal was put forth by a Socialist author than ran for governor of California who sought to end poverty in the state…

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Hiltzik, M. (October 18, 2011). Herman Cain's murky 9-9-9 tax plan. Los Angeles Times. Retrieved 12 November, 2011 from http://articles.latimes.com/print/2011/oct/18/business/la-fi-hiltzik.
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