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Republican Presidential front runner, Herman Cain's 9-9-9 federal tax proposal was getting a lot of press before allegations of his inappropriate behavior hit the news. But it's worth a second look. Lets briefly review the pros and cons of this unusual proposal.

For the purpose of this article, we will assume the basic tenants of the 9-9-9 proposal as true. Those being:

? 9% flat tax on all businesses
? 9% flat tax on individuals
? 9% national retail sales tax on all retail purchases

The five top reasons Cain's proposal would be a good thing for the country:

1.) All payroll, inheritance, capital gains, repatriated, taxes would be eliminated (among others).
2.) It would end most deductions and special interest favors.
3.) It shifts taxation from the production side to the consumption side of taxation.
4.) This scheme makes taxation more transparent across the board.
5.) Probably the most popular element in this plan with the public: The reduction of personal income tax to 9% across the board.

And now the top five big unanswered questions and problems:

1.) The national sales tax at 9% would raise the tax on retail purchases to nearly 20% in some locations thus causing sales to plummet at least initially. Can you say sticker shock?
2.) No deductions for family purchases related housing, education, or healthcare just to name a few.
3.) This plan is inherently unfair: Lower income and middle income people would pay drastically higher percentages of income than the top 10% of households.
4.) It will eventually morph into a value added tax similar to Europe's and could soon rise to 10%, then 11% then, well who knows?
5.) State, county, and local taxes and fees will still exist and will probably rise over time to make up for federal cut backs. This is one of the biggest unknowns for Cain's proposal. We simply cannot know what our individual, complete tax picture will look like under this plan.

Conclusion

While I applaud Cain's effort to simplify, clarify, and make taxation more transparent, 9-9-9 is fundamentally unfair. Additionally, it would cause widespread buying panic prior to its initiation, exponentially grow the underground and untaxed economy, and grow the government even more.

Moderation is in order here. It is important to remember that our current tax rate is the lowest it has been since the 1950's and as we all know and feel everyday, we are in the midst of recovery from the worst recession on record. To purposely cause chaos in the country's economy now would be a huge mistake.

Transparency and simplicity-those should be the plan for tax reformation. Incremental change over a period of decades that is fair to ALL constituents should be the goal. Out tax systems now favors special interests, and those with the cash to influence. That's where the revolution needs to begin.

Though I'm no proponent of the current burdensome, over regulated, over complicated tax collection system, I do appreciate some of what my [u]taxes provide and as a citizen with a conscience, I am willing, just like Warren Buffet, to pay my FAIR share.

By D T Waterfill
Article Source: http://EzineArticles.com/?expert=D_T_Waterfill