More right-wing “populism”

ThinkProgress has run the numbers on Herman Cain’s vaunted 999 plan and whaddya know…

For the income tax portion: In 2007, total Adjusted Gross Income on all income tax returns was $8.7 trillion. Since Cain’s plan would exempt investment income, but would have no other deductions, that brings taxable income down to $7.4 trillion. A flat 9 percent tax would therefore have yielded about $665 billion in income tax revenue.

For the corporate tax portion: In 2007, there was a total of $1.3 trillion in reported corporate income subject to tax. A flat 9 percent would have yielded $112 billion in revenue.

For the sales tax portion: I used generally accepted estimates of the revenue generated from a value-added-tax (see here and here, for example). Those estimates suggest that a broad-based 5 percent tax on goods and services would generate about 2 percent of GDP in revenue. That implies that a 9 percent tax in 2007 would have generated about $500 billion.

– Together, then, the 9-9-9 plan would have generated a bit less than $1.3 trillion in total federal tax revenue. That may sound like a lot, but it’s only 9.2 percent of GDP. In 2007, we actually collected 18.5 percent of GDP in tax revenue. In other words, the 9-9-9 plan would cut federal revenue in half!

I know that all news orgs have to talk about different things because saying the same thing over and over and over again is boring to people, but Republicans’ economic plan is to cut taxes for the rich, regardless of what happens to the deficit (and raise taxes on the poor, if need be). Same deal with Romney’s plan. It may be boring, but this should be repeated until people understand this or their plans change (via).

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