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.
I'm sure Hillary is still befuddled how she could have lost to a clean and articulate???? black man with basically "0" experience.
The Dem party put blinders on and pulkled the lever. They can all rot in hell. They gave us an incompetant piece of cr**. Shame on them!!
Current circumstances call for bolder action.
The Phase 1 Enhanced Plan incorporates the features of Phase One and gets us a step closer to Phase two.
I call on the Super Committee to pass the Phase 1 Enhanced Plan along with their spending cut package.
The Phase 1 Enhanced Plan unites Flat Tax supporters with Fair tax supporters.
Achieves the broadest possible tax base along with the lowest possible rate of 9%.
It ends the Payroll Tax completely – a permanent holiday!
Zero capital gains tax
Ends the Death Tax.
Eliminates double taxation of dividends
Business Flat Tax – 9%
Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders.
Empowerment Zones will offer additional deductions for payroll employed in the zone.
Individual Flat Tax – 9%.
Gross income less charitable deductions.
Empowerment Zones will offer additional deductions for those living and/or working in the zone.
National Sales Tax – 9%.
This gets the Fair Tax off the sidelines and into the game.
Phase 2 – The Fair Tax
Amidst a backdrop of the economic boom created by the Phase 1 Enhanced Plan, I will begin the process of educating the American people on the benefits of continuing the next step to the Fair Tax.
The Fair Tax would ultimately replace individual and corporate income taxes.
It would make it possible to end the IRS as we know it.
The Fair Tax makes our exported goods and services the most competitively internationally than any other tax system.
Phase 1 Enhanced Plan – Summary
Unites all tax payers so we all pay income taxes and no one pays payroll taxes
Provides the least incentive to evade taxes and the fewest opportunities to do so
Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etc.
Is fair, neutral, transparent, and efficient
Ends nearly all deductions and special interest favors
Ends all payroll taxes
Ends the Death Tax
Features zero tax on capital gains and repatriated profits
Lowest marginal rates on production
Allows immediate expensing of business investments
Eliminates double taxation of dividends
Increases capital formation. Capital per worker drives productivity and wage growth
Capital formation will aid capital availability for small businesses
Features a platform to launch properly structured Empowerment Zones to revitalize our inner cities
We all know the Fed has tripled the money supply since 2008. They have been printing money out of thin air to finance the Obama spending machine. While true Fed reform that restores sound money may have to wait for my election, the best thing we can do now is to pursue policies that increase the DEMAND for dollars to help mitigate the risks associated with the increase in the supply.
Pro-growth economic policies equal a strong dollar policy
http://www.hermancain.com/999plan
My understanding is there are no exemptions except for Charitable donations. However, it is rarely pointed out that there is no sales tax on used items. So if you buy a used car-no tax. By a washer off Craigs List- no tax. That would create a huge secondary market for used goods which would profit everyone.
The bottom line is....This 9-9-9 plan isn’t going to happen.....PERIOD.
If I understand this correctly, only new goods would be taxed. So if you buy a used car, house, or anything else, the 9% sales tax would not apply, right?
AMEN!
Pizza is Cain's biggest selling point.Exactly. That's quite a jump, from Pizza to the WH.
I'm not saying it can't be done, I'm just saying his hurdles are immense.
So? Considering we have increased annual Fed spending by over $2 trillion in the last 3 years, finding $300 billion to cut would be easy.
Right which is why you waste all your time racing around from thread to thread trash talking it.
No they would not since all the other forms of Fed taxation, direct, and indirect, would have gone away under 9-9-9.
And that would be a good thing.
However, that conclusion is likely based on a static analysis. That type of approach always underestimates tax revenue after a cut in tax rates.
I didn't see enough in this article to know how the calculations were done to make a decision for or against this plan. I am in opposition to a national sales tax that doesn't also put a constitutional limit on both the max income tax and max sales tax.
I agree. And I really would like to see Romney and Perry's plans.
But I guess, being professional politicians, all they have to do is give nice speeches, not actually present a Presidential agenda.
Apparently only the non professionals like Cain have to present actual plans and ideas.
Corporations might come back but it will kill the small business owners. My husband was self employed and I went back and looked at some of the returns and in the year 2006 under the Cain plan we would have paid 4750.00 more in taxes because of the deductions taken away and in small business it is reported on your personal income taxes. So it will kill small businesses and they employ a lot of people
Right, but the 9-9-9 is a Federal plan. If States still have income and sales taxes, they’ll be in addition to Fed taxes, no?
You two sure you are at the right website? You are both posting boiler plate leftist dogma here
Rather then turn the company around and save it from bankruptcy by laying off some people, you two would rather he end up bankrupting the company. Odd how you over look the fact that would of been forcing EVERYONE into the unemployment line.
Sounds like you two would be way more comfortable at Democrat Underground then any Conservative website
Sure, but it eliminates all the direct, and indirect, Fed taxes you pay. To claim it adds to your existing burden is incorrect because you would be paying less Federal taxes over all.
No it would not because you would not be paying your current corp tax rate plus your FICA/medicare contributions under 9-9-9.
9-9-9 doesn't add to your existing tax burden. You have to figure out how much less you would pay in other Fed taxes not just add it to your existing taxes
Yeah that conservative “think tank” University of New Mexico.... LOL!
I would love to see the details of this study and WHO were the investigators. Furthermore, the University of New Mexico is not the Holly Grail of business schools.
So the University of Mexico believes the current communist Progressive tax code is better. LOL!
OF COURSE THEY WOULD! NO SURPRISE AT ALL...
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