Herman Cain’s 9-9-9: Who benefits?

It sure isn’t women. Sofia Resnick has done the math:

Under Cain’s plan, millionaires would get a 17.9 percent tax rate, or a 22 percent boost after taxes. But a single mother earning between $20,000 and $30,000? Her tax rate would be 24.9 percent. In other words, a single mom making $25,000 a year will have to give 25 percent of her income, or $6,250, to taxes.

Women make up 49 percent of the workforce, but 59 percent of low-wage workers. Because women earn less than men, they are concentrated on the left in the graph based on data from the Tax Policy Center. The graph shows how Cain’s plan would affect the different income groups. The 9-9-9 plan would increase the tax paid by the poorest by about 20 percent. It would make no difference to households earning $200 thousand, and lower the rate paid by those earning over $1 million by about 15 percent.

 

In 2010, women in salaried jobs earned just over  our fifths more than men.

 

discusses the gender-wage gap and its relevancy to tax-policy issues:

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Filed under economy, Politics, Women

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