This post is based on an article in The Record on the tax plan noted above. The article says the plan is in no way "simple" as Mr Cain claims. In the first phase of the plan income tax rates for individuals and corporations would be reduced to 25 %, it would "allow for favorable rate" on overseas profits for corporations, and end the capital gains tax. In the second phase, the "9-9-9" part comes in. Abolish the payroll tax, establish 3 new tax rates; one of which would be 9 % on income w/ no personal exemptions, standard deduction, mortgage deduction, earned income tax credit or child credit. Establish a 9 % federal sales tax in which companies would pay and corporate income tax that would be like a "value-added tax". In the third phase the new income tax and value-added tax would be thrown out and a "fair tax" of 9 % established. This source says that at that time a 30 % retail sales tax would be created (I have read or heard nothing of this idea and don't know if this is a federal, state or both tax). This source says the system would be too complicated and would not work as Cain says it would. (Is the source or Cain correct? I don't know). This obviously needs more research.
(Source: "Cain's '9-9-9' plan Does it add up? by Ramesh Ponnuru who writes for Bloomberg News and is a senior editor of the National Review. In The Record on 10/23/11).
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