Another 9-9-9 Distributional Analysis Chart

Neil Klopfenstein offers us another visualization of Herman Cain’s 9-9-9 tax plan based on the Tax Policy Center’s analysis:

Here instead of looking at dollar amounts, we look relative to income and the picture gets clearer. I should reiterate again that there’s some dispute over the TPC’s methodology for calculating the distributive impact of consumption taxes. Their view, as I understand it, is that in the infinite horizon, all income is consumed, so a consumption tax is equivalent to a flat payroll tax. With the methodology my colleagues on the CAP econ team prefer, which looks more literally at the incidence as the new system phases in, the Cain plan is even more regressive.