Krugman Blog- Tax Policy Center does Herman Cain

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October 18, 2011, 5:27 PM
TPC Does Herman Cain
The Tax Policy Center has the distributional analysis of 9-9-9. It’s awesome:


Howard Gleckman summarizes:

A middle income household making between about $64,000 and $110,000 would get hit with an average tax increase of about $4,300, lowering its after-tax income by more than 6 percent and increasing its average federal tax rate (including income, payroll, estate and its share of the corporate income tax) from 18.8 percent to 23.7 percent. By contrast, a taxpayer in the top 0.1% (who makes more than $2.7 million) would enjoy an average tax cut of nearly$1.4 million, increasing his after-tax income by nearly 27 percent. His average effective tax rate would be cut almost in half to 17.9 percent. In Cain’s world, a typical household making more than $2.7 million would pay a smaller share of its income in federal taxes than one making less than $18,000. This would give Warren Buffet severe heartburn.

http://krugman.blogs.nytimes.com/2011/10/18/tpc-does-herman-cain/

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