Herman Cain's 999 Plan

What do you think? I think it looks like a good start . . .

http://www.hermancain.com/999plan

Herman Cain's 999 Plan



Vision for Economic Growth

• The natural state of our economy is prosperity. Freedom ensures that.
• We must get the government off our backs, out of our pockets and out of our way in order to return to prosperity.
• Policy uncertainty is killing the economy.

Economic Guiding Principles

1. Production drives the economy, not spending.
   • We can not spend our way to prosperity.
   • Government spending IS taxation.
   • Government spending is like taking a bucket of water from the deep end of the pool, pouring it in the shallow end. Then they HOPE that the water level will CHANGE.
2. Risk taking drives growth .
   • Business formation and job creation are dependent on entrepreneurs taking risks.
   • Investors who fund those entrepreneurs likewise take risks.
3. Measurements must be dependable.
   • A dollar must always be a dollar just as an hour is always 60 minutes.
   • Sound money is crucial for prosperity.

We Must Unite Not Divide

• When one party seeks to spend so that the other party must focus on cutting, we must unite around economic growth.
• Unite all tax payers, don’t divide them into “income” tax payers vs. “payroll” tax payers.
• Unite those wanting to eliminate deductions with those seeking lower rates.
• As a first step, unite the “Flat-Taxers” with the “Fair-Taxers”

Economic Growth is the Key

• This is the worst recovery since the Depression.
• If the President’s goal was to tie for last place with the previous worst recovery, he failed by 6 million jobs.
• If we had a typical recovery, 13 million more Americans would be employed today.
• That means more tax revenue, less government spending and 13 million less people opposed to reasonable spending cuts.
• The Super Committee must deliver a robust growth solution.
• America can’t wait for 2012, we need growth NOW

Phase 1 - 9-9-9

• 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

This is Herman Cain:

• Chief Executive Officer and President of THE New Voice, Inc., a business consulting company, and Head Coach of HITM (Hermanator’s Intelligent Thinkers Movement)
• Former Chairman of Godfather’s Pizza, Inc. after serving as CEO and President for ten years, 1986 - 1996. In 1988 he bought the company from The Pillsbury Company
• Former President of the Tax Leadership Council, the public educational component of Americans for Fair Taxation
• Past Chairman of the Board of the National Restaurant Association (1994-1995), and former full time CEO and President of the Association (1996-1999)
• Member of The National Commission on Economic Growth and Tax Reform (1995), chaired by former Republican Vice-Presidential candidate, Jack Kemp
• Former Member, Strategic Air Command (STRATCOM) Citizens Advisory Board, Omaha, Nebraska
• Radio Talk Show Host, “The Herman Cain Show”, News Talk 750 WSB – Atlanta, Monday - Friday, 7pm-10pm EST
• FOX News Business Commentator and Columnist with NorthStarNational.com, World Net Daily and DailyCaller.com
• At a nationally televised Presidential Town Hall Meeting on Health Care Reform (1994), challenged President Bill Clinton’s health care proposal when he said, “Mr. President, with all due respect, your calculations are incorrect…”
• Served on the Boards of Directors of AGCO, Inc., Georgia Chamber of Commerce, Hallmark Cards Inc., Whirlpool, Inc.,and Morehouse College, Atlanta, Georgia
• Graduated from Morehouse College with a B.S. in Mathematics in 1967. Earned his Master’s Degree in Computer Science from Purdue University in 1971. Recipient of eight Honorary Doctorate Degrees from Morehouse College, New York City Technical College; Suffolk University, Johnson & Wales University, Creighton University, Purdue University, Tougaloo College and the University of Nebraska
• Author of four books, Leadership Is Common Sense (1997), Speak As A Leader (1999), CEO of SELF (October, 2001), and They Think You’re Stupid (May, 2005)
• A native and current resident of Atlanta, Georgia. Married for over 40 years with two adult children and three grandchildren

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It doesn't add up at least to me. So now people will pay a flat tax of 9% and a Federal sales tax of 9%. Now if you think about this a little what does the sales tax apply to? Does it include things like food, cloths, services? Now if that is so that make sales tax here in Kentucky at 14% which would get to be serious on say a large ticket item like a stove, or car a bit out of reach of many. It would be worse in states like Florida, California etc where their state and local sales taxes are almost there now.

I like alot of things about Cain but a national sales tax I don't like. Especially for food, everyone rich or poor has to eat and food is expensive enough without sales tax. Also for the economy to grow people have to start spending money again and that's hard to do with a 9 percent fed. sales tax on top of the other sales taxes.

I suspect food (except junk food) would be tax exempt. That's the way it works in countries like Canada.

If I only had a 9% income tax then I would totally go with a 9% sales tax. Of course, I live next to Oregon which has no state income tax.

I suspect food (except junk food) would be tax exempt.

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I don't particularly like being penalized for my choice of food. I hate the NANNY state!

I also have other problems with it, first where is he going to cut spending at. This no matter how you cut it will pay down our debt and still allow the government to operate unless that is the point of this exercise. I might add here in Lexington KY we pay both a state and county income tax which are separate bills. Through it Business, drivers and tag licenses it can get rather high quickly, especially for those on a fixed income. I also have a problem with them taxing only politically non correct foods. Cheap food is often bad food but if that is all you can afford it will keep you alive.

I can think of 2 real easy ways to cut spending, 1st do away with the BATFE completely 2nd cut the DEA way back. They must have way to much money if they can harrass medical marijuana dealers in California.

How about bring our military spending under control. The US spends about 48% of every dollar the world spends. The next highest is China at a whopping 14% according the last time I saw the chart. We spend close to 8 billion a week in Afghanistan that from a military spokesman on this mornings news.

joec said:

How about bring our military spending under control. The US spends about 48% of every dollar the world spends. The next highest is China at a whopping 14% according the last time I saw the chart. We spend close to 8 billion a week in Afghanistan that from a military spokesman on this mornings news.

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I totally agree. But Bush had plans in place to bring our boys home from Afgan by now, Obama extended it. Ditto Iran.

I firmly believe we should not be the world's police force. Heck we are still in Germany and WWII ended 60ish years ago! And Korea!!! WTF?

Here is a quote for you. Now I assume the site is close if not dead on as I've been to a few unofficial bases that are as well set up as Camp Lejeune.

http://www.fpif.org/articles/too_many_overseas_bases

Officially the Pentagon counts 865 base sites, but this notoriously unreliable number omits all our bases in Iraq (likely over 100) and Afghanistan (80 and counting), among many other well-known and secretive bases. More than half a century after World War II and the Korean War, we still have 268 bases in Germany, 124 in Japan, and 87 in South Korea. Others are scattered around the globe in places like Aruba and Australia, Bulgaria and Bahrain, Colombia and Greece, Djibouti, Egypt, Kuwait, Qatar, Romania, Singapore, and of course, Guantánamo Bay, Cuba — just to name a few. Among the installations considered critical to our national security are a ski center in the Bavarian Alps, resorts in Seoul and Tokyo, and 234 golf courses the Pentagon runs worldwide.

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The United States of America has become an empire like Rome and others throughout history. If it doesn't change soon we will suffer their fate only in less time I'm afraid and that is my own personal opinion.

joec said:

The United States of America has become an empire like Rome and others throughout history. If it doesn't change soon we will suffer their fate only in less time I'm afraid and that is my own personal opinion.

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Totally agree with you on this.

Those aren't golfballs they are white grenades!

If he puts 9% on top of NY 8% they may as well take all my money. Local taxes already take 16% for school and roads etc. Hell I would qualify for food stamps then!

As I see it, no tax reform will pass Congress that will reduce or eliminate the ability of Congress to manipulate it to buy votes. The 999 plan would not pass without the exceptions, and once you make the first exception, the second will not be long in coming. A national sales tax would tax everyone equally on consumption, including the poor, a 9% income tax across the board would tax the 50% not now paying income tax, even if their income came from welfare. A 9% across the board corporate tax would mean no favors to corporate donors, not a bad thing, but it would also mean no more charitable donations to your favorite charity or subsidies for windmills and corn, again, not necessarily a bad thing, but somebodies ox is going to get gored. Tariffs would be a thing of the past.

Interesting to noet that the Forbes proposal of a 17% flat tax stated that everyone would pay the same percentage. The second sentence of the proposal stated that there would be an exemption for those with kids. On the surface, the 999 proposal seems to address everyone equally, but it proceeds to outline the first exceptions, and does not address the ability of Congress and the WH to change it at their whim.

Having said that, Cain is starting to make more sense to me than the rest of the candidates combined. At least he has a plan that we will be allowed to read before they pass it.

jimbo said:

As I see it, no tax reform will pass Congress that will reduce or eliminate the ability of Congress to manipulate it to buy votes. The 999 plan would not pass without the exceptions, and once you make the first exception, the second will not be long in coming. A national sales tax would tax everyone equally on consumption, including the poor, a 9% income tax across the board would tax the 50% not now paying income tax, even if their income came from welfare. A 9% across the board corporate tax would mean no favors to corporate donors, not a bad thing, but it would also mean no more charitable donations to your favorite charity or subsidies for windmills and corn, again, not necessarily a bad thing, but somebodies ox is going to get gored. Tariffs would be a thing of the past.

Interesting to noet that the Forbes proposal of a 17% flat tax stated that everyone would pay the same percentage. The second sentence of the proposal stated that there would be an exemption for those with kids. On the surface, the 999 proposal seems to address everyone equally, but it proceeds to outline the first exceptions, and does not address the ability of Congress and the WH to change it at their whim.

Having said that, Cain is starting to make more sense to me than the rest of the candidates combined. At least he has a plan that we will be allowed to read before they pass it.

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I agree with this Jim with some caveats and also why a flat tax isn't fair in most cases. Now as you said the 50% that don't pay taxes is a really not actually true unless you are completely on Social Security, welfare or unemployed, disabled. Everyone that works in a ligament job pays FICA which is in the 13% range. They also pay income tax though they may get back most if not all of what they paid. Now that is on a federal level however every one pays sales tax unless you have a tax deferred number (business only and limited) and if one livestate s uch as Kentucky you pay income tax on the state level as well as the county level in Lexington. You also have hidden taxes such as gas, cigarettes, alcohol, etc all there by Federal, State and Local. Also individuals other than those with kids would be hard pressed working a normal 40 hour week for hourly wages to find anything to take a deduction on unless they wage was really high enough to put them in upper middle class. Don't forget renewing a drivers license or ID card costs, tags for a vehicle, inspection in some places, permits required for some trades. So it is really a streach to say 50% pay no taxes. Even a person in jail pays money in one form or other while there.

I think I said that 50% pay no income tax. It is true that they now pay consumption tax and other pass through taxes such as corporate and real estate, and energy taxes. I just don't see a tax reform plan passing that diminishes the ability of Congress or the Executive branch to manipulate it. This is my point. It sounds good on paper, but the reality is the plans presented all include the first exemptions. In the Cain plan, he exempts charitable donations and allows empowerment zones, whatever that is. Can a kid deduction, an exemption for low income, political contributions, etc, be far behind?

I have no idea what a fair tax is. Obviously 9% of the population paying 50% of the taxes does not seem fair to those not paying any tax, and they ask for more. One of the supposed organizers of the Wall Street protest stated in an interview that in her mind that Jobs should have been allowed to keep his first quarter billion (that he made before he was 25) and all the rest should have been returned to the government. She probably was talking on her I phone at the time.

I don't have any answers that I see working, and at this point I am not sure there are any.

That is the problem Jim is a lot of complaining but few even willing to go on record with a solution. Cain's 999 has another tax plan which may be great but not enough detail yet. He also has no experience in government nor foreign affairs so he doesn't have a clue on how to deal with Congress or matters of state. If he gets elected he will soon find out as others before him have in todays environment there is little he can really do.

Obama has a jobs plan now which is a start as the more work the better the economy gets for every one. However it is much less than needed but is still better than nothing. The main problems with our economy is a much weakened middle class due to manufacturing jobs being shipped off shore over the years meaning less spending powers for them. Consumers don't buy then the economy comes to a halt regardless of what business one is in.

jimbo said:

I think I said that 50% pay no income tax.

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Yes, but how many of those are negative income tax payers? IOW, how many are getting money + benefits from the Federal and State governments?

Let's truly level the playing field.

joec said:

It doesn't add up at least to me. So now people will pay a flat tax of 9% and a Federal sales tax of 9%. Now if you think about this a little what does the sales tax apply to? Does it include things like food, cloths, services? Now if that is so that make sales tax here in Kentucky at 14% which would get to be serious on say a large ticket item. . .

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Joe you are confused and your math is wrong.

Lets say you live in a state with a 5% sales tax.

Lets say you buy a $10 item. You think that item costs you $10.50 because the 5% sales tax is added.

But lets say you also are in the 25% tax bracket. You had to earn $12.50 to get the $10 bill in your pocket because 25% was take away from you in the form of income tax. Then you had to earn another roughly 70-cents to pay the 50-cent sales tax.

So the $10 item cost you $10 + $2.50 income tax + 50-Cents Sales tax + 12.5 cents to pay tax on the money you earned to pay the sales tax. The actual cost of your $10 item is approximately $13.04. The actual tax rate is over 30%

Now under Herman Cain's proposal the income tax would be 9% instead of 25%. So to earn enough money to pay for the $10 item you will only have to earn an additional 18% to cover the 9% Income Tax + 9% Federal Sales tax, plus your 5% state tax, so the actual tax rate is about 23%.

Assuming a 25% Income Tax rate TODAY, you actually would save 7-Cents on each dollar you spend under the 9-9-9 plan.
Assuming a 20% Income Tax rate TODAY, you actually would save 2-Cent on each dollar you spend under the 9-9-9 plan.

It is pretty easy to see how this can help the middle class save money in their pockets.

PBinWA said:

Yes, but how many of those are negative income tax payers? IOW, how many are getting money + benefits from the Federal and State governments?

Let's truly level the playing field.

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I'm not sure I am following your question and statement. If you are asking how many are getting government benefits, the answer is all of them, as is everyone else in the country.

As to leveling the playing field, I'm not sure I follow. The playing field will never be level. Those with kids will always send them to public schools. Those with cars will always use public roads. Those of us who fly will depend on public airports and security. Those of us who eat will pay for food inspection. These are examples in no way complete, but all of us use public facilities in one form or another. And each and every individual pays for the use at a different level, even if you don't use the amenities at all.

Melensdad said:

Joe you are confused and your math is wrong.

Lets say you live in a state with a 5% sales tax.

Lets say you buy a 10% item. You think that item costs you $10.50 because the 5% sales tax is added.

But lets say you also are in the 25% tax bracket. You had to earn $12.50 to get the $10 bill in your pocket because 25% was take away from you in the form of income tax. Then you had to earn another 62.5-cents to pay the 50-cent sales tax.

So the $10 item cost you $10 + $2.50 income tax + 50-Cents Sales tax + 12.5 cents to pay tax on the money you earned to pay the sales tax. The actual cost of your $10 item is $13.025. The actual tax rate is over 30%

Now under Herman Cain's proposal the income tax would be 9% instead of 25%. So to earn enough money to pay for the $10 item you will only have to earn an additional 18% to cover the Income Tax + Federal Sales tax, plus your 5% state tax, so the actual tax rate is under 24%.

Assuming a 25% Income Tax rate TODAY, you actually would save 6-Cents on each dollar you spend under the 9-9-9 plan.
Assuming a 20% Income Tax rate TODAY, you actually would save 1-Cent on each dollar you spend under the 9-9-9 plan.

It is pretty easy to see how this can help the middle class save money in their pockets.

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As I said Mel we will see what it looks like after the Congress gets done with it. Keep in mind that our tax system has been reworked several times over the years only to still be complained about fairness. I also think at this time I don't think taxes nor our deficit is something that needs to fixed until there are jobs period. Get people working, paying taxes and spending money for goods the deficit and tax problems won't seem so great.

Now Cain's plan may be great as I also said it just doesn't add up to me until I see the finished product. At least till I see someone beside pundents reviews of it.

Joe, I think you have it backwards. Until the out of control spending, limitations on business, deficits, and taxes are dealt with, there will not be jobs.

I'm not sure who has it backward here. Spending is out of control due to unfunded wars, deficits will go up when unemployment rises which isn't going to happen. As Ross Perot predicted when he spoke of the big swishing sound of jobs leaving America due to lessing of restrictions on business in the form of NAFTA and other policies. No jobs to earn money to buy, no sales for manufacturers. It doesn't get simpler than that really.

joec said:

I'm not sure who has it backward here. Spending is out of control due to unfunded wars, deficits will go up when unemployment rises which isn't going to happen. As Ross Perot predicted when he spoke of the big swishing sound of jobs leaving America due to lessing of restrictions on business in the form of NAFTA and other policies. No jobs to earn money to buy, no sales for manufacturers. It doesn't get simpler than that really.

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Then stop the unfunded wars, stop the rise in unemployment and bring it down to less than 8% as promised. Stop the sending of jobs overseas by limiting the ability of business to compete. (Think the light bulb, invented here, no longer possible to produce here.) Stop new NAFTAs. Right now Obama is actively pushing free trade agreements with Columbia, Panama, and South Korea. If you don't like the trade agreement with Mexico, repeal it. You might want to start by stopping their largest export, job taking Mexicans. This can be done by enforcing the laws already on the books instead of suing states that are trying to help enforce the laws that the feds refuse to enforce.

Obama has been in command for nearly 3 years, 2 of those with total control of the legislative branch. Unemployment has gone up, deficits have gone up, national debt has gone up. Those troops he promised to bring home are somehow increasing, and we have moved into several new countries, mostly without the approval of Congress. He was given a trillion dollars with which he was going to improve all of these factors. Those shovel ready jobs he claimed to know about don't seem to exist. Those alternative energy jobs seem to not be as ready as once thought and are going to require more subsidies to make them competitive. And most new sources of badly needed domestic energy production have been effectively shut off. Instead, the money seemed to go to those what brung him there. We've got a looming disaster in the form of Obamacare which is surely not going to decrease manufacturing costs in the US. Now his answer: If you just give me another half trillion I can fix these problems. And by the way, now that I am back from my most recent vacation, I need this bill passed now so that it doesn't interfere with my campaigning trips.

jimbo said:

Then stop the unfunded wars, stop the rise in unemployment and bring it down to less than 8% as promised. Stop the sending of jobs overseas by limiting the ability of business to compete. (Think the light bulb, invented here, no longer possible to produce here.) Stop new NAFTAs. Right now Obama is actively pushing free trade agreements with Columbia, Panama, and South Korea. If you don't like the trade agreement with Mexico, repeal it. You might want to start by stopping their largest export, job taking Mexicans. This can be done by enforcing the laws already on the books instead of suing states that are trying to help enforce the laws that the feds refuse to enforce.

Obama has been in command for nearly 3 years, 2 of those with total control of the legislative branch. Unemployment has gone up, deficits have gone up, national debt has gone up. Those troops he promised to bring home are somehow increasing, and we have moved into several new countries, mostly without the approval of Congress. He was given a trillion dollars with which he was going to improve all of these factors. Those shovel ready jobs he claimed to know about don't seem to exist. Those alternative energy jobs seem to not be as ready as once thought and are going to require more subsidies to make them competitive. And most new sources of badly needed domestic energy production have been effectively shut off. Instead, the money seemed to go to those what brung him there. We've got a looming disaster in the form of Obamacare which is surely not going to decrease manufacturing costs in the US. Now his answer: If you just give me another half trillion I can fix these problems. And by the way, now that I am back from my most recent vacation, I need this bill passed now so that it doesn't interfere with my campaigning trips.

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I damn sure dont get no simpler then that. Well said Jimbo.

I have no problem with you statement at all and agree with most. However it doesn't stop the bleeding by this country as neither the democrats or republicans have a clue about how real people in this country feel. Based on the trash that is running next time it doesn't look much better for the future either as none are really qualified that will even be considered for the job. Now that is the sad truth, we are a dieing nation. Perhaps this is what the end of the world was about based on the Inca calendar.

I agree Joe, that is one of the reasons I am liking Cain more and more. The guy did not grow up rich, made the most out of what he was given, felt enough confidence in himself to buy a foundering business and turned it around in a couple of years.

I don't believe that it is the end of the world. The world will go on long after the US is dead. That is what I am worried about.

What I meant by the end of the world is life as we here in the US know it.. I have no faith in Cain at all as being good in business or making something out of ones life has little to do with the single most powerful job on the planet in my opinion. I see few governors qualified today to handle the job as they lack the know how to deal with foreign countries and little knowledge of how the government works on the federal level. Meanwhile we wait for them to learn on the job. I suggest you simply look at every president and how they aged over their time in office. The job has more stresses than any can imagine and would be a nightmare for most that say how they can do it better.

I would like to agree on experience mattering in the pres job, but the reality is that it is the top of the heap, and, with the possible exception of vice president, there is no place to gain the experience except OJT.

I've known a few CEO's over the years, and almost to a person they claim that if you can run one company, you can run any company. Cain brings to the table the ability to run something and turn around a failing business. I liken the current problems in the country as a failed business, and the same solutions should apply.
When Reagan was asked how he could fall asleep during cabinet meetings, his answer was that if he couldn't sleep during meetings, then his failure was hiring the wrong assistants. I think that this is a large part of the failure of the current administration. Most if not all were not hired according to what they could bring to the table, but instead by what they had already brought to the table. Look at the list. Most are old cronies who helped him get elected, and few have any experience at the position they were hired.

Right now the Republicans have only one man in the field that has the qualification need to be president. He will doubtfully last no more than a couple more weeks due to he doesn't fit the cool mode. He is a 2 term governor, that had extensive business experience before being governor as well as world wide experience with dealing with foreign affairs before and after being a governor for several presidents. He was the last ambassador to China so also has the best background with dealing with them. He isn't cool so he has a snow ball chance in hell. Meanwhile Cain will shoot himself in the foot like Perry and Bachman have, to me he is the flavor of the week. I truly expect Romney to win the nomination and half of the base won't show up, the Christian right and tea party members.