The tax plans from Rick Perry and Herman Cain would make millionaires vastly richer while raising taxes on the middle class. It's voodoo economics gift-wrapped for rich voters.
Republican presidential candidates are falling over themselves promising to cut your taxes. Well, probably not your taxes. Somebody else's taxes. Somebody rich.
First there was Herman Cain's 9-9-9 plan, which would replace all of our current taxes with a 9 percent national sales tax, a 9 percent "business tax" and a 9 percent tax on income. Now Rick Perry says that his 20 percent "flat tax" is even better. Meanwhile, Michele Bachmann says Perry stole her idea. But let's be clear: These are massive tax cuts for the rich, not for most of us.
The Cain 9-9-9 plan is breathtaking. The poorest Americans would see their effective tax rate increase from about 5 percent to 18 percent. The typical household would pay $4,000 more than today. But the top 0.1 percent would get an average tax cut of $1.4 million and would pay an effective tax rate of 18 percent--lower than any other income group. That a plan so insane could be proposed by a leading presidential candidate just shows how crazy our political system has become. Although Perry's flat tax preserves the tax code for most families, he offers a special tax cut for the rich. A retired couple making $700,000 would be $75,000 richer under his plan. (To see a very tall graphical representation of Perry and Cain's tax plans, see Derek Thompson's charts.)