Skip to comments.My Plan to Revive Economic Growth (Herman Cain)
Posted on 09/15/2011 8:27:15 AM PDT by justsaynomore
Today, the Wall Street Journal published Herman Cain's editorial on "Cain's Vision for Economic Growth." You can check it out online here or just read below:
(Excerpt) Read more at online.wsj.com ...
Last week, President Obama unveiled his eagerly anticipated jobs plan. After 43 minutes of his speechifying, Americans were left wondering: We waited 30 months for this?
Indeed, it seems Mr. Obama's first term has been spent advancing a legislative agenda that pays no mind to our ailing economy and the Americans whose sufferings are casualties in his ideological war. After a failed stimulus package, preferential industry bailouts, and the disastrous government overhaul of the health-care industry, it seems the plight of the American worker has remained an afterthought.
This is the worst jobs recovery since the Great Depression. If the Obama administration's aim was to merely tie for last place with the previous worst recovery, it would have created eight million more jobs, based on comparative data from the Bureau of Labor Statistics. If our recovery were more typical of the postwar era, as former Sen. Phil Gramm reported on this page in April, we would have 14 million more jobs today.
As a longtime leader in the business community, I know firsthand that government does not create jobs. It can only create the conditions in which businesses operate. These conditions can spur growth, or they can suppress it. The conditions imposed by the current administration have suppressed growth.
Still, there is hope. That hope begins with economic certainty, a sort of assurance the president seems unwilling to provide. I, on the other hand, have proposed a plan that would stabilize and grow our economy:
"Cain's Vision for Economic Growth," also known as the 9-9-9 Plan, is founded upon three guiding economic principles: Production drives the economy. Risk-taking creates growth. Units of measurement must be dependable.
The plan begins with restructuring the tax code to include the broadest possible base at the lowest possible rate. The elements are:
A 9% corporate flat tax. Businesses would deduct purchases from other businesses and all capital investment. The resulting gross income is taxed at 9%.
A 9% personal flat tax. Individuals would deduct charitable contributions, then pay 9% on the rest of their income. Capital gains are excluded.
A 9% national sales tax. This levy would be placed on the consumption of all new goods. Used goods purchased would be excluded.
My plan would also permanently eliminate taxes on repatriated profits, as well as payroll taxes and the estate tax.
All of these measures would free up capital, spur production, and incentivize risk-taking, thereby fueling the economy and creating jobs. The plan has been designed to be revenue neutral initially, and then revenues would grow in line with the economy.
But these policies must be coupled with sound money. A dollar must be worth the same tomorrow as it is today. Stabilizing the dollar's value starts with the federal government taking significant measures to rein in its spending and pay down the national debt. Americans must be assured that the federal government will live within its means and get serious about eliminating our crippling debt. Repealing ObamaCare, Sarbanes-Oxley and the Dodd-Frank bank-regulation bill would be critical steps.
Finally, my plan promotes enterprise zones, also known as "empowerment zones." Coupled with tax reform and monetary stabilization, empowerment zones would revitalize inner cities by providing tax credits to businesses that hire workers living and working in underprivileged areas.
Some of the most tragic unemployment numbers can be found in minority communities and in urban centers around the country. Empowerment zones would create a whole new generation of wage-earners providing for their families. The late Jack Kemp, a secretary of the department of Housing and Urban Development and a dear friend, was one of the first lawmakers to propose empowerment zones. He understood the tremendous economic benefits they would provide.
Each job lost today is not merely a statistic. Americans are struggling to determine whether to pay their mortgages or buy groceries, whether to buy school uniforms or pay the electric bill.
Such despair is unfitting for the greatest nation the world has ever known. After all, it is inherently American to work, to risk and to dream. Our government's policies should encourage that, not stifle it.
Mr. Cain, a Republican, is running for president of the United States. He is a former chairman and CEO of Godfather's Pizza and a former chairman of the board of directors to the Federal Reserve Bank of Kansas City.
To request your copy of Herman's "9-9-9 Plan" in PDF format, email info@Hermancain.com.
Don't forget to show your support for Herman and "Cain's Vision for Economic Growth" by donating $9.99 today! With your help, we can continue to spread our message of "Common Sense Solutions" and elect Herman as "America's CEO!"
Could we just settle for the Fair Tax?
Its been studied, researched, and number crunched ad infinitum and holds up. And it puts an end to taxes on success (income).
born December 13, 1945 in Memphis, TN (Meets the Jus Soli Requirement)
Luther Cain Jr., born March 16, 1925 in TN, died March 29, 1982 in Atlanta, GA
Lenora Davis, born July 27, 1925 in GA, died August 20, 2005 in Atlanta, GA
Both parents were US Citizens at the time of his birth (Meets the Jus Sanguinis Requirement)
Herman Cain is a NATURAL BORN CITIZEN
Barry Soetoro aka Barack Hussein Obama ISN'T!
Good for Herman. I hope this gives him more “street cred” in future debates. People will want to know even more about this honorable man.
Two points: 1) You will NEVER get anything near the Flat or Fair Tax with almost 50% of the public not now paying. Good idea...never gonna happen.
2) A Republican Presidential candidate, Cong. Thad McCotter, introduced the SAVE SOCIAL SECURITY ACT, which would not only save but strengthen the system and improve it, WITHOUT increasing the retirement age, WITHOUT increasing the payroll tax, WITHOUT reducing benefits, and WITHOUT privatizing. Before the legislation was introduced, the plan was scored by the SSI actuary and he stated that it would merit 100% participation. If Herman Cain’s plan merits analysis and coverage, don’t you think that A SUBMITTED BILL that deals with the hottest toipic in the campaign merits the same attention?
Herman is the dark horse in this race. I hope he hangs in there...
It’s a fine plan, especially the repeal of Obamacare, Sarbanes-Oxley and Dodd-Frank. Better than what we currently have.
Not a big fan of “empowerment zonzes”, but at least he is only offering tax credits rather than subsidies.
I like Cain. He offers a lot to the debate.
This is a bridge to the Fair Tax (my understanding is the transition to Fair Tax is made before one Congressional term is complete).
I also likes that the plan involves cuts to spending and sound money (I personally think it is crucial that both of those be accomplished to make the Fair Tax transition go more smoothly)
Well, that puts Cain even more firmly at the front of my Primary race.
Too bad I’m only one vote.
That requires a whole bunch of trust in Congress and I don't think they deserve that much trust.
I think I'd rather keep the absolute abomination that is the income tax rather than give them the power to impose a sales tax without repealing the 16th amendment first.
I just don't trust 'em even if they are bound by law I don't trust 'em.
There is NO reason to trust them now. They are manipulating the tax code all the time. The difference is this - a flat tax affects every person in the US. Congress will have pressure on EVERY SIDE not to change those numbers until the 16th can be repealed.
Along the same lines as my post above -you have to remember Congress themselves will be bound by this same code. There is no motive for them to change the rates (except downward), because they are paying the same amounts. There is no special treatment of the elite, the politicos, and it eliminates the incentive for Congress to kiss up to lobbyists. No more earmarks or pay to play.
They are supposed to pay the same income tax rates now but we find them all the time that don't. Even Charlie Rangel from the tax code writing committee didn't pay up -- and got just a slap on the wrist. Don't get me going on Timmy Geithner.
Until they face SEVERE consequences for tax corruption they will just keep picking our pockets and seeing to it that we can do nothing about it.
Exactly, there is less room for manipulation in a Flat Tax and no room for manipulation in a Fair Tax. Even if people like Rangel cheat the Flat Tax part, they cannot cheat the sales tax part. I would love to see these people be forced to put more skin in the game.
I believe we will have a majority in the House and Senate, meaning there is a REAL opportunity to throw out this tax code. And I believe of all the candidates running, because of his leadership style, Cain is the one who could lead Congress down the road to major reforms like this.
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A Nine% national sales tax
A None% personal flat tax
A None% corporate flat tax
Because all income taxes ought to be unconstitutional.
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