Chart of the Day: Taxing the Poor

<a href="http://www.flickr.com/photos/gageskidmore/6183942539/sizes/l/in/photostream/">Gage Skidmore</a>/Flickr


ABC News has crunched the numbers and reported what independent analysts had basically been saying for a while now: Herman Cain’s 9-9-9 plan, despite his promises to the contrary, would almost double the amount middle-class Americans pay in taxes (low-income earners would see their tax burden increase nine-fold.)

There are a number of different components to this, but one of the most glaring elements of 9-9-9 is that it puts a 9 percent federal sales tax on food. That’s on top of whatever other sales tax exists (Alabama and Mississippi, for instance, already apply a full sales tax to groceries). Cain says that this is only fair, because everyone buys groceries. But that ignores the fact that taxing groceries is incredibly regressive. As you can see in this handy chart, poor people have to spend a much higher percentage of their income on food than rich people. Obviously, with more disposable income you can buy fancier varieties of food and do all your shopping at Whole Foods, but there’s a limit even then; it’s not as if Warren Buffett subsists entirely on $1,600 muffins:

Pretty self-explanatory: The less money you have, the more of it you have to spend on food.: Courtesy of the USDASelf-explanatory: The less money you have, the more of it you have to spend on food.: Courtesy of the USDAPoor Americans spend a lower percentage of their income on food than the rest of the world because poor Americans are pretty well-off, relative to the rest of the world, but the overall trend is pretty obvious. Cain has attempted to argue away the point that 9-9-9 is regressive by noting that under 9-9-9, there would be no tax on used goods. Food isn’t much good once it’s already been used once, though.

MORE HARD-HITTING JOURNALISM

In 2014, before Donald Trump announced his run for president, we knew we had to do something different to address the fundamental challenge facing journalism: how hard-hitting reporting that can hold the powerful accountable can survive as the bottom falls out of the news business.

Being a nonprofit, we started planning The Moment for Mother Jones, a special campaign to raise $25 million for key investments to make Mother Jones the strongest watchdog it can be. Five years later, readers have stepped up and contributed an astonishing $23 million in gifts and future pledges. This is an incredible statement from the Mother Jones community in the face of huge threats—both economic and political—against the free press.

Read more about The Moment and see what we've been able to accomplish thanks to readers' incredible generosity so far, and please join them today. Your gift will be matched dollar for dollar, up to $500,000 total, during this critical moment for journalism.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.