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.
bi should be big
It’s the ‘cocktail napkin’ tax plan. “You have to pass it to see what is in it”.
Perry’s supporters want to point to the Texas economic miracle. Texas is funded by a sales tax, a de facto Fair Tax.
Cain’s 999 transition to the Fair Tax will do more to bring the Texas model national than electing Perry.
Too bad no one scruntinzed Obama when he surged, ain’t it?
Oh well, Merica, better skill next time.
RE: Cain’s 999 transition to the Fair Tax will do more to bring the Texas model national than electing Perry.
Is that a good thing?
Should America be more like Texas, or more like California?
The contract with America in 1995 was a list of specific legislative and economic proposals. How did that work out for the Republicans. The dirty little secret is he believes in this 9/9/9. Unlike Perry and Romney he is doing it to save this country not to garner votes from a select group.
RE: It’s the ‘cocktail napkin’ tax plan. “You have to pass it to see what is in it”.
One big difference — unlike Pelosi, Cain welcomes scrutiny.
Why not 10-9-8???
RE: Why not 10-10-10??
Herman Cain: “If 10% is good enough for God, then 9% should be just fine for the Federal Government.”
The 999 plan requires a 2/3 majority in the senate to increase taxes and as this article points out, when implemented there’s an immediate $300 Billion tax cut.
The critics will just have to get their government freebies elsewhere. There is nothing to dislike about the plan from the standpoint of cutting the size of government.
It doesn't sound like it from the article.Who is his big team of economists? Cain says it's a secret.
“You have to pass it to see what is in it”
Has Ricardo put forward any economic plan aside from subsidized college tuition for illegal aliens?
They already exist under current law. They are not a new item from Cain but he proposes to revise them so they can be effective economic development tools.
Even the contract with America didn’t give such specifics and besides, congress is held to easier standards than someone running for president.
Again, I’m not saying the idea is a bad one, but I don’t think the straight-jacket it puts him in is good for his election prospects.
The MSM are masters at using buzz words to tar conservatives and support liberals. I swear, they must all take Subtle Bias 101 at their colleges, they are such experts at it.
There are a ton of words that they are careful to put in articles to convey meanings that are the opposite of the story. For instance, I don’t remember any Obama articles with the word “Defensive” in the title when he was running.
They will put use all these words with negative connotations; they will put the meat of a story favoring conservatives in later paragraphs, while they lead with it with libs, and vice versa for negative ones. They will write stories showing how leftists are behaving terribly with incoherent grammar so you can’t really understand them.
They will use their a republican’s name blatently on every negative story about anything in the universe, while positive stories they will attach a dem’s name to. Dems will be described as feeling, concerned, involved, such as in Obama warns of such and such or Obama expresses concern, etc. Republicans will be described as “The Bush Administration today fretted” or such. Always less powerful, cold expressions.
Of course, this doesn’t even include the things they don’t cover that they should.
The AP I’ve noticed is really expert at this. I’m convinced they sit around discussing how to twist the news to protect their special groups.
Sorry for the early monday rant.
RE: It doesn’t sound like it from the article.Who is his big team of economists? Cain says it’s a secret
____________
You don’t have to know the names of his economists. It’s there for all to see.
Cain never told anyone not to scrutinize his plan. Heck, throngs of people on FR are already attacking it even as we speak.
I say the more the merrier.
Is the 9% sales tax on top of state taxes? Yuck! We pay 7% sales tax here in FL.
However, regardless of the impact, I like the idea of an across the board sales tax. It forces ALL consumers to pay taxes instead of this convoluted progressive tax scheme the IRS calls “fair.” Tax consumption and tax sin, IMO.
Not according to his website. It says nothing about a super majority required to raise the rates.
Which is what we need to cut in spending. They just don't want to mention that.
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