Flat tax or senior screw job?

Now for the higher income seniors a flat tax may be good, but for your average senior (say with an income of $30,000 per person) may be a another way to put the burden on those who already struggling to maintain a decent life style.  RepukeCon Cain is proposing a flat tax of 9% which I believe includes payroll taxes like FICA and Medicare.  For the bottom end this is a tax increase, for the more affluent this is a tax decrease (Payroll taxes for FICA and Medicare is 7.65% and 9% is greater than 7.65% and I would assume no EIC).

From the discussion of the flat tax I have heard it would eliminate exemptions and deductions.  This means you would pay taxes on the first dollar of income. 

Let's suppose you are single and drawing $18,000 in Social Security benefits.  In addition you receive about $12,000 of income from your retirement funds (company retirement or IRA).  Your total income is around $30,000.  Now if 1/2 your Social Security ($9,000) and other income ($12,000) is less than  $25,000 your Social Security benefits are not taxable.  In this case $9,000 + $12,000 is less than $25,000 so your Social security benefits are not taxable.  Your income subject to tax is $12,000.  Your personal exemption and the standard deduction total is around $8,500 so that leaves $3,500 taxable at a 10% rate.  Your federal income tax is around $350.

Under a flat tax of 9% your taxes on $30,000 ($18,000 Social Security + $12,000 other income) would be about $2700 or almost 8 X your current taxes.  Even if Social Security was excluded if you tax $12,000 from the first dollar the tax  your tax would be over $1,000 or almost 3 X your current tax.

I can't answer for you, but I have planned my future based on the current tax rules.  I say leave them alone!!!  Also, Cain is proposing a 9% sales tax.  This guy is a nut case IMO.

Isn't the lack of interest you are (interest not received) enough of a hidden tax?  How much do they think they can push on to seniors with limited income.  I did warn you early on though they would come after the money you had put aside for your retirement (because that is where the money is).