So says Louis Woodhill for Forbes, here:
Comparing the Republican candidates’ tax plans as written, Cain’s “9-9-9” proposal is the best, because its 9% (effective) corporate income tax rate would produce faster economic growth than Perry’s 20% rate or Romney’s 25% levy. Cain’s plan has a number of problems, but these could be fixed if he were to give up on the notion that it should be “revenue neutral”.
Given that Cain has the best plan for economic growth, it is not surprising that the latest polls show him leading the Republican pack.
This having been said, Cain’s 9-9-9 plan is not as good as the FairTax, which Cain himself says is his ultimate goal. The FairTax , which taxes only consumption spending, would yield the fastest economic growth of any tax system. The FairTax plan has also had the benefit of years of analysis and refinement to minimize the distributional inequities that would attend any kind of fundamental tax reform.
Mr. Cain should start emphasizing that economic growth is much more important than revenue neutrality, and he should promise to refine his plan so that no income group ends up having to pay much more than they would under the current system. If he does so, he, like fundamental tax reform, will be unstoppable.
