Republican presidential candidate Herman Cain’s 9-9-9 tax plan seems to be resonating with the American public. But some Republicans in the House are skeptical, The Hill reports
The former Godfather’s CEO calls for dumping the current tax code and replacing it with a 9 percent tax on ordinary income, a 9 percent corporate income tax, and a 9 percent national sales tax. It’s the sales tax that has some Republicans concerned. They’re worried that Congress will be tempted to increase the rate in future years.
“That would be an initial concern,” said Ohio Rep. Patrick Tiberi, chairman of the House subcommittee that oversees tax policy. “You are now creating a new federal tax without eliminating a federal tax.”
Texas Rep. Jeb Hensarling, chairman of the House Republican Conference and co-chairman of the supercommittee on deficit reduction, said, “I am a huge admirer of the author of 9-9-9, although I’ve got a few reservations about having both an income tax and a sales tax.”
Republicans in the House already are working on tax reform of their own. The April budget plan written by Budget Committee Chairman Paul Ryan would simplify the tax code and cut the top marginal income rate and the corporate rate to 25 percent. It envisions no new sales tax. Ryan hasn’t expressed support for the Cain tax plan.
© 2013 Newsmax. All rights reserved.