Cain Expands Tax Plan

BY Andrea Salazar

With his much-discussed “9-9-9” tax reform plan under fire from Republican candidates and independent analysts alike, Herman Cain today announced modifications to the plan.

In a speech in front of an old unused train station in Detroit, the surprise contender revealed a series of adjustments to the plan, which involves replacing the current tax code with a simple nine percent business tax, a nine percent personal income tax and a nice percent national sales tax.

That last part has drawn widespread criticism by many who have called it a regressive tax on the poor and those in the middle class. Furthermore, observers have noted that it would not replace state sales taxes, but instead would be implemented on top of them.

On his official website, Cain argues that reducing business tax rates will lower the price of goods, thus negating any potential increase in costs to consumers created by a new national sales tax.

However, critics believe they have found a hole in Cain’s gameplan and are continuing to attack the plan.

That’s likely the reason that Cain today proposed instituting “opportunity zones,” or deductions, aimed at encouraging economic development in poor areas. Cain described them as “positive incentives that encourage people to work and take risks in this economy.”

“We carved out a substantial amount from the aggregate 9-9-9 plan tax base – enough to exempt those in poverty – and we will work with Congress to best apply these in a way to break the poverty trap,” he said.

Cain also proposed eliminating minimum wage laws as a way for businesses to hire more employees.

Geoff Holtzman contributed to this story.