Wednesday, October 5, 2011

Herman Cain's Plan for America--His 999 Plan Explained

I  am dedicating my time to presenting each candidates views for America. 

Thus far I have presented the plans of Mr.Gingrich and Gov. Romney.

Voters need to be informed and this is my quest. 

We have experienced the results of having an electorate of uninformed voters and it was clearly displayed in the election of 08 when individuals voted for an individual with no track record, no background that could be verified or vetted as the politicians say.

We can not allow this to happen again in this country. The results have thus far been devastating and the next time around could bring the end of America as we have known it for the last 235 years.

Today it is Herman Cain's 999 plan for America. 

I have asked for further explanation of the consumer tax and what it covers and if there are exemptions from any part of the tax.

Hopefully I will receive my answer soon.

Until then, take time to read Mr. Cain's plan for America through his 999 plan.

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


Anonymous said...

Don't like the 9% sales tax. I am paying about 10% Federal Income tax now on $75 K gross, taking the standard deduction ( not itemizing ). I sure don't want a Federal VAT on top of 8% State sales tax.

Thanks but no thanks

Speedy G said...

2 steps sound like 1 step too many.

Ticker said...

The tax you are paying now would decrease to 9%. What part did you miss?
National Sales Tax – 9%. This gets the Fair Tax off the sidelines and into the game. Phase 2 – The Fair TaxAmidst 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.
There is an offset in the consumers tax on groceries as he said yesterday and I am waiting to hear from his office if there are any others. He said it was on his site but I have not seen it yet. Or perhaps he was saying it would be on his site. I'll keep all informed as I said in the beginning of this blog post.

Ticker said...

Speedy, just how would you go about the plan. Do you believe that a total overhaul of the tax code as we have today can be done in one step? If so explain how. Do you believe that the overhaul of the corporate tax mess can be done in one step along with the overhaul of the individual tax code? If so how.
Thank you for your input.

Anonymous said...

Thanks Ticker. Mr. Cain went to some lengths to try and explain his plan on one of the FNC programmes, and it made good sense to me.

Like all changes, other than Obama's changes, will take time to implement, so don't expect miracles overnight.

Old Rose

Faultline USA said...

Very helpful. Thanks for making Cain's plan more clear.

Debbie said...

I like Herman Cain and I like his tax play. This explains it easily for anyone with half a brain. I'm going to forward it to a few people who have been griping about Cain's plan, probably without understanding how the plan works and too lazy to find out.

Right Truth

Ticker said...

Faultline and Debbie, thank you for your comments. I will try to get some deeper information on the consumer tax from his Hq. I talked to them today via e mail. Since I live a short distance from his GA HQ I am willing to visit to see what I can find out.
I too had a bit of trouble with the VAT, consumer tax in that it would reflect negatively on the housing market by increasing the price 9% upfront. Not a good thing in a disastrous market like her in GA.

Anonymous said...

What part do I miss? I think you don't understand this part. Besides the 9% consumption federal tax there is a state income tax and a state/local sales tax. Then you are overlooking the fact that I pay roughly 10% on my income after the standard deduction ... ( I give genoursly to charities and church but don't own a home and don't have enough other deductions to itemize ) thus under Cain's plan I would basically be taxed 18% on the vast majority of my income.

Again ..Thanks but no thanks

Ticker said...

Anon. You would no longer pay 10% income tax. Only your charitable donations would be deductible and since that is what you seem to have placed emphasis on that would be good for you.
Tax on food will be refunded for persons with a certain income. I believe he said Family of four income of $50k per year. So maybe it won't help you there but it will a lot of folks.
I , just as you have some questions and am looking for the answers from his office. I will have them shortly as per the phone call this PM from his office here in my area.
It beats the current tax situation where taxes are hidden in everything the government has their hand in. You just don't know it but they are there and passed along in cost to your the consumer. the 999 eliminates these hidden taxes.

Anonymous said...

It's been five days since your last update. Anything from the Cain campaign?

Ticker said...

Anon, several times but evidently you only read blog post with his name in the title.
He is leading Romney in two of today's major polls , tied in another. All this even after Christie's support for Romney.

After the debates this week he will gain even more strength. Independents such as myself are hearing him and liking what we hear. May not agree on everything but at least he has a plan to fix, not just throw rocks at what is wrong as has Romney , Perry, Bachmann and Santorum. Paul has some good points which will be taken into consideration by the nominee Cain but even after his #1 showing at the Religious Far Rights farce he is slipping once again.

mikewlig said...

You did note here you try to get more information. I assumed it would be entered into this post. Phase two of his 999 plan looks like a run up to a 30% national sales tax and SS/Medicare rolled in. Seems a dangerous slope to take. What's your take and why so much enthusiasm for a plan that isn't complete?

Ticker said...

Mike if you have listened to Mr.Cain you would understand that each part of his 999 plan is tied to a requirement of a 2/3rds vote to change any of the precentages. Now , you may say well that's easy enough but one factor that Mr.Cain has figured in is you and I, the We The People putting enough pressure on the Congress that they would not do such. As it stand now, under the current code hidden taxes are being slipped into our life each day with out our knowledge as in Obamanocare Health plan with 186 taxes and his jobs bill with a myriad of unseen taxes. Oh they don't always call them taxes, they call them fees etc but in the end they are taxes.
On the subject of SS. The current tax collected will be done away with and replaced with just the 9%.
The consumer tax is the one which causes most of the concern since it is on every purchase made at the grocery store to the housing market it seems at this point. However Mr. Cain has provided a provision for a set aside(for lack of a better word) as I noted in comments to Anon.
It gives a family of four with income of under $50K ($60K) this exemption or set aside. The actual number may differ once the law is set into place. It may be higher if Mr. Cain has his say but he appears not to budge on a lower figure. This will protect many folks , especially the retired seniors. Of course the "fear mongering" so well used by the LEFT on anything to do with Seniors has begun. Some by the left and some by Ron Paul supporters and the elite's of the GOP pulling for Romney. They have no real facts to use against Mr. Cain so they go to the tactics of the LEFT aka Saul Alinsky tactics of isolate and attack.
I will continue to post more about each candidate as time goes on but not on this post. It will be in new post and will not always carry Mr.Cains name as the headline. It will however have to do with current happenings in the GOP nomination process. I am sure that I will be posting after the debate of this week. I find it a travesty that only one outlet is carrying the debates rather than all of the news outlets. Of course the LSM doesn't want facts to be presented which Obama would have to refute since he has no record to run on. Our media is failing the nation but then what's new.
Thank you for continuing to follow Jus'Sayin'.

Anonymous said...

Are you always so nasty with your readers, Ticker? I ain't paying no 18% taxes. No way, Jose!

Ticker said...

Nasty Anon. Saying that perhaps you read only blog post with his name in it? Hardly nasty just a statement of facts it seems.
You still haven't read the entire plan have you. You just worry that you might have to pay a bit more(but you have no clue how much or how little now do you) You haven't done the math as Cain says and don't really care. Try to get informed.
Now if that was nasty in your mind, so be it. Don't like it you are welcome to go. It's a free country come or go it is up to you.

Anonymous said...

I agree, Ticker is pretty rude. Too much of an "I'm right, you're wrong, and you're an idiot for thinking otherwise" kind of guy.

NoSocialism said...

Ticker doesn't realize that he's currently paying 20% between SS and Medicare PLUS 10% in Federal Income tax. That's 30%! Unfortunately, most people have no clue as to what their REAL tax rate is and I SERIOUSLY doubt that taking Standard deductions, he's only paying 10% on 75K in income, unless of course he has a ton of kids.