Herman Cain is very impressive and, while I do have concerns, I cannot get totally away from the idea that he could be what America needs. This video is from Cain’s web-site. Last night Cain suggested that every American examine his plan and not just listen to pundits. Below the video are a few facts and selling points along with a few concerns:
Actually, 9-9-9 is only phase one. Phase two is to usher in the Fair Tax. In Phase one Americans will pay:
9% Business Flat Tax
- Gross income less all purchases from other U.S. located businesses, all capital investment, and net exports.
- Empowerment Zones will offer deductions for the payroll of those employed in the zone
9% Individual Flat Tax.
- Gross income less charitable deductions.
- Empowerment Zones will offer additional deductions for those living and/or working in the zone.
9% National Sales Tax.
- Unlike a state sales tax, which is an add-on tax that increases the price of goods and services, this is a replacement tax. It replaces taxes that are already embedded in selling prices. By replacing higher marginal rates in the production process with lower marginal rates, marginal production costs actually decline, which will lead to prices being the same or lower, not higher.
- According to former Reagan Treasury official Gary Robbins, of Fiscal Associates, the 9-9-9 Plan will expand GDP by $2 trillion, create 6 million new jobs, increase business investment by one-third, and increase wages by 10%.
One part of the plan that still troubles me is the mention of empowerment zones whereby taxes are lowered for some areas. This does not treat all Americans as equals and if one area may be lower, another could be much higher.
The fact that a part of the plan is a sales tax will be necessary if the nation is to adopt the Fair Tax plan.
Another concern that I have is this: When will Mr. Cain end the IRS? Will this be done at the beginning of Phase One or at the beginning of Phase Two? This is VERY important and should be clearly established before he is chosen as the Republican candidate.
Hopefully Mr. Cain will respond to these questions and that will enable voters to better decide if his is a plan we can support. If Cain should be chosen, I think Newt Gingrich would be a perfect running mate. His experience and Cain’s fresh ideas could be a winning combination.
America needs to pray daily for God’s guidance concerning Election 2012.
- Is Herman Cain’s 9-9-9 tax plan fair? (usatoday.com)
- Video: Herman Cain Explains His 9-9-9 Plan (nicedeb.wordpress.com)
- Herman Cain’s 9-9-9 Plan Gets A Closer Look – NPR (news.google.com)