Posted on 10/13/2011 8:30:53 AM PDT by Watchdog85
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
What is so fair about the “empowerment zones”?
This gets the Fair Tax off the sidelines and into the game.
This does not explain anything. This could be a retail tax or a VAT. He needs to add much more detail, or drop the whole subject.
If democrats regain control, they could raise the rates on whatever tax system is in place. With 100% of the people paying the sales tax and income tax, it would make it harder to raise those rates than the current system of ‘tax the rich’. Not the mention the 2/3 requirment to raise the rates. Which, admittedly could be removed with a simple majority in congress and signature by the president. But that is one more hurdle required than now.
I think he needs to clarify th Empowerment Zones before he gets my support. Sounds more like Perpetual Welfare Zones to me.
Yep! There is no tax on wholesale, only retail. You’re thinking of the VAT tax where a tax is added at all levels. Cain’s 999 has no tax on wholesale and no tax on sales of used stuff.
35% to 9% is a big difference.
wholesale product taxed 35% to make the product.
cains plan: wholesale product taxed 9% plus your 9%= 18%
Michele Bachman Turner Overdrive says this plan cannot possibly work because using the economic theories and mathematical models of Professor Lou C. Fur, if one indicates and applies the U.D. method to the 999, you can rationalize and observe the negative demensional plane.
Thanks, I could not get it to post like that.
A lot of people are complaining that this will be the 29-29-29 plan before long. Any tax plan is subject to increases. The income tax started out as a simple plan to tax only the wealthiest and look at what we have today.
It will be harder for congress to raise a tax that affects everyone. Now only the top 50% pays any income tax so close to a majority aren’t affected by increases.
Money put into savings will be taxed at a lower rate. And too, there will be no capital gains tax to eat away at interest earned on savings.
Foreigners will be contributing to our tax base from purchases.
Businesses will be moving here from overseas instead of the other way around.
And, one of the best parts to this is the saving of the 400 billion now spent to comply with the current laws.
Yes it could become a monster just like the tax code we have now but it will take some time and the economic boom that results will be obvious to everyone. It will be up to the citizens to keep congress in line and with 100% paying in that will be much easier to do. When the top 10% of earners pay 70% of the tax it is a lot easier to get the population behind raising taxes.
Finally, the tax code should be a vehicle for funding legitimate government and not to pick winners and losers or affect peoples’ behavior or to redistribute wealth.
I fixed jets for 25 years. When something was broke I’d troubleshoot, then put together a plan to correct the problem. I stayed with that plan through its course of action until repair was complete.
While another would go around in circles trying to decide what to do, no plan and never attacking the problem. At the end of day my jet was out flying making revenue while the other still sat broke in the hangar.
Nothing gets fixed without a plan, Herman Cain has a plan.
It’s worse than that. Scratch “wholesale” , you’ll be paying 9% on that.
Well said. And welcome to FreeRepublic.
Oops, sorry—misread the date and thought you were new to FR!
How about we just skip the distraction of 999 and go straight to the FairTax and be done with it!!
well no—wholesale product is not taxed at 35%
Lets say I bought a dozen necklaces from my NY supplier at the trade show in Vegas, He is a sole proprietor that imports from the Philippines. Definitely, not a mega corporation—so the 35% corporate tax does not apply.
Now, if his cost for some reason becomes less, will he charge less? No, he will maximize profits, just like I do. Now, his necklaces are pretty darn low anyway, so saying someone will come in cheaper is a misnomer here.
I live in the world of table top capitalism. Pennies do count. If I can not deduct my fuel, my living expenses on the road and the cost of fairs like I currently do, I would not have much at the end of the year.
Now I gotta do paper work for not only the four out of the five states I sell in at fairs, I gotta do FED sales tax too.
If I am wrong here, point it out to me.
This answers your question:
all purchases from other businesses (No VAT)
The fair tax would be even better because it would be voluntary and it would allow people to keep their whole paycheck. I think the prebate is a stroke of genious and the whole thing would supercharge the economy. I think Cain thinks that it would be too radical a change to be accepted and that is why the 9-9-9 plan is a transition phase to the ultimate goal of the fair tax.
I like it.
Exile, deportation, imprisonment, and execution?
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