Posted on 10/10/2011 6:46:18 AM PDT by SeekAndFind
WASHINGTON – Republican presidential candidate Herman Cain defended his 999 tax plan against growing criticism Friday at the Values Voter Summit, telling naysayers to address him directly rather than make calculations of their own.
Cain said his 999 plan – 9 percent corporate tax, 9 percent personal income tax and 9 percent national sales tax – is a "bold" solution to the nation's weak economy and those who didn't agree had likely tampered with the plan's formula.
He stressed the plan is revenue neutral and would generate more income as businesses grow. It will also save the nation $430 billion dollars, he asserted.
However, many question whether the 999 plan will generate revenue comparable to the current tax code.
The Washington Times tested the plan in a September editorial using personal income figures generated by the University of New Mexico's Bureau of Business and Economic Research and retail figures compiled by the U.S. Census. The publication was able to generate $1.1 trillion a year in personal income taxes and $380 billion in retail taxes using the 999 tax model. Combining those figures with the Times' estimate that a 9 percent corporate income tax rate would generate $270 billion, it guessed that the 999 plan would raise $1.8 trillion. The government currently takes in $2.16 trillion in taxes, according to Politifact.
He told supporters at the Value Voter Summit, "When you see reports talking about [Cain's tax plan] won't do this and won't do they have changed the assumptions."
Cain's spokesman J.D. Gordon assured that Cain's plan has been vetted by a number of advisers.
"Mr. Cain's idea was the 999 – the name, the concept, the idea – and he worked with Rich (Lowery, his economic advisor) to get it done [and] put the policy on paper. Then there's an economic advisory council that they have," Gordon told The Christian Post.
But media reports describe Lowery as a wealth manager and not an economist.
Gordon remained tight lipped about the members of Cain's council and informal economic network except to say they are, "very well-known political experts, economic experts and foreign policy experts that advise him privately." He said the group also includes a former ambassador to the United Nations.
When asked why he would not reveal that names of those mystery advisers, he cited a variety of reasons including, "they don't want to declare a candidate until the race is decided."
However, the Cain campaign remains sure of the plan's effectiveness.
"He had [the 999 plan] scored and the estimate from the scoring is that it would create 6 million jobs because the whole concept is that corporations could grow," said Gordon.
Cain emphasized that plan is meant to give businesses certainty and foster an environment ideal for job creation and economic growth.
Still, critics of Cain's plan are also critical of the plan's national sales taxes. There is currently no national sales tax. States do, however, charge local sales taxes.
Rachelle Bernstein, a vice president and tax counsel at lobbyist group National Retail Federation, said "An additional tax on consumer spending will negatively impact that already weak demand."
Gordon responded that consumers will be cushioned by the reduction in the personal income tax.
However, he did not answer questions regarding why Cain would create a new federal tax at a time when GOP party leaders are bent on cutting taxes and government regulation.
Cut the pills, you will feel better.
Real simple solution. Quit lying about Cain and people will quit pointing out that you are lying about him
So you favor business-destroying 35-35-0? Or what?
Which means Bloomberg has no idea what the actually facts are and merely wishes it were not true. See real news stories, do not interject opinion into their "reporting" This article you cite is an opinion piece, not a news story. Nice try but rumor and innuendo are still rumor and innuendo no matter how desperately you want to believe them.
Stop lying and we will stop pointing out your lies.
True, he's not handpicked, never been to the Bilderbergers, not a member of the CFR, has no notable DC connections, etc. Yep, his hurdles are immense alright.
RE: Cut the pills, you will feel better.
C’mon, you’re better than that. Answer the man’s arguments, don’t attack him personally.
There's absolutely no doubt that 9-9-9 is better for small businesses than 35-35-0. You probably need to check your numbers and/or publish them here.
We’ll see if he takes on Romney or not, and then we can talk more about “hand picked”.
Free market. A competitor will lower their prices and undercut them.
Why do you favor 35-35-0 over 9-9-9?
Because the market didn't force him to at that time. Either you trust the free market to deliver the best prices or you favor socialism or some other government-run pricing system. There are no in-between choices.
Lots of seniors will have a longer time horizon than some younger voters. They understand how business needs lower taxes and how it is in their interests to vote that way. But regardless, why do you favor 35-35-0 over 9-9-9 apart from your "concern" for seniors?
I agree, that's a legitimate concern. In the mean time you are welcome to put forward positive ideas about your favored candidate, whether Perry or other (I have no idea, and have nothing major against Perry)
How about this. YOU finally answer the question posted to you days ago, I will start taking your commentary seriously.
Where is the Perry Presidential plan on anything?
Nice speeches full of soaring words and platitudes is not a Presidential agenda.
Taxes? Government Reform? Jobs? Education? Anything? Where is it Perrybots?
So instead of racing around lying about Cain, why don’t the Perry supporters try explaining to us why we should support Perry instead?
Where did all these concern-trolls and 35-35-0 is better than 9-9-9 newbies come from?
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