What Could Cain’s 9-9-9 Plan Mean For You?

ABC News ^ | 10/13/11 | Ben Forer

[SoJoCo]

They lose sales of the the car.

By that logic we would all have been driving Yugos back in the 80's.

But you are right in that it may not be passed on but that will be because so many people are back to work, and so many businesses are making more money that people can now afford existing price, an natural inflation of supply side economic kicks in.

Or companies may quite rightly decide that the lower costs belong to the corporation and use it to build shareholder value - the primary goal of any company. Higher margins mean higher share prices. Larger profits mean higher dividends.

Case in point, back in 2004 they had that tax holiday profits earned overseas. Companies did not use that money to lower prices or increase workforce. On the contrary, costs remained the same, thousands were laid off, and the money was used to buy back shares, increase profits, and inflate management bonuses. Why should we expect a corporate tax decrease to be any different?

[SoJoCo]

Suppose you control one car company, and I control another. if you dared keep any or all of your tax savings, I will put you out of business, take your customers, grow my market, and increase my profits. You’ll either react by learning your lesson and following my lead, or going out of business.

If that is true then every person in the U.S. should be driving a Hyundai, and the Mercedes and BMW dealerships should be wastelands. Yet they aren't.

[BagCamAddict]

I guess I kind of disagree. He is certainly saying 9-9-9 a lot when he has the opportunity. So he is painting himself with the 999 brush. But I don't think that locks us, or the country into 999 at all. Politicians say all kinds of things when they campaign. Thank God he hasn't “promised” anything about 999. Very few campaign promises come to pass. Remember Obama’s number one task was going to be closing Gitmo. Then lo and behold, once he was made privy to top secret information, he changed his tune about dangerous people in Gitmo. (Still laughing at that one!)

So Cain can say 999 all he wants... it doesn't mean it's going to come to pass. Right?

[BagCamAddict]

Our system is broken.

Services provided by “the government” cost money. National Defense costs money.

Someone has to pay for it.

EVERYONE benefits from these services, so EVERYONE should pay for them. Period.

The system is broken, when it allows people to benefit from services without paying anything to support those services.

[LibsRJerks]

What are your spouse and any other children she may have doing to help the MIL?
****

This brings up a HUGE point I’d like to make.

A LOT of people out there have elderly parents whom they STICK in a nursing home and FORGET. Then they expect the taxpayers to pick up the tab through Medicaid and Medicare. They NEVER agree to make their family member a DNR (do not rescucitate) type patient, so it is up to the system to keep this person alive FOREVER and to go to any and all means to do so.

Perhaps if people start to do better financially, they can start taking in their parents, or helping them financially. I’m really tired of the burden of age being put on every subsequent generation of taxpayers.

It’s high time people A. start working and SAVING for their old age, and B. families starting taking care of their elders — remember, like we used to?

[SaraJohnson]

Your are absolutely right. 999 probably won’t come to pass. But what will happen is that Cain will wear the 999 plan like a millstone around his neck during the general election campaign and I question if he can win with this centerpiece of his campaign.

The Left will never let him off it and it is something they can easily manipulate as demonstrated in this article and the response to it on FR.

[kevao]

I’m shocked how many people on a site like this are arguing that it’s better that I and an ever-smaller number of people like me keep paying more and more of our incomes to Fedzilla so that an ever-larger number of them can continue to pay nothing, all because they “can’t afford” a 9% sales tax!

When you start hearing that kind of stuff even on a conservative site, you know Atlas is getting closer and closer to shrugging. I know my shoulders are growing quite weary of it all....

[BagCamAddict]

You're right, it will get manipulated. People are too lazy to look up the info for themselves (Lordy, how many on this site won't even click on the link when it's handed to them!!??). And people are too ignorant about math to understand it unless it is absolutely spelled out in plain and simple English.

That's where Cain needs a PR person. Cain is too smart. Even when he thinks he is dumbing something down, he isn't dumbing it down far enough.

With any luck, maybe someone like Trump or Buffet or someone with tons of money will get behind Cain and buy him some PR and buy him some plain-speaking pamphlets and advertisements so the general public can understand it.

The truth is, some people will have their expenses (taxes) go up. And most of those people will vote against him simply because of that — because they are selfish. They want the country to get out of debt, but not if they have to pay for it. They want economic stimulus and a job, but not if they have to work for it or pay their share of taxes.

We need a leader who will take the children of this country by the ear (I don't mean young people, I mean immature, selfish, in-debt-up-to-their-ass adults) and get them back on the course of financial discipline.

[BagCamAddict]

I agree. And if this is what so-called Conservatives are saying, imagine the Left!

I watched a couple order lunch today at a restaurant. They ordered a Seafood Platter ($19.99) and Spaghetti and Meatballs ($7.99). Then they helped themselves to the all-you-can-eat Buffet. When their lunches came, they said they were full and they didn't want them. Their bill, including what they ordered, plus two buffets, plus drinks, plus tax, was around $60.00. They screamed foul-mouthed murder about how they shouldn't have to pay for their lunches because they only ate the Buffet. The owner of the restaurant eventually let them leave with only paying for the two Buffets and the drinks.

And that, my FRiend, is what is happening in our country. “Someone else should pay for it, even though I ordered it.”

[SaraJohnson]

And that, my FRiend, is what is happening in our country. “Someone else should pay for it, even though I ordered it.”

---

It would be a good idea for conservatives to start off cutting corporations off welfare before we complain about entitlements. We should be focusing on TARP and the bailouts of Cash for clunkers, GM and GE rather than focusing on increasig taxation on the lower and middle class even though they should pay “their fair share.

We have capitalists who don’t even accept paying for what they expect in government services. They supported Obamacare to get out from under health care fringe benefits and they don’t want to pay for that either - like there is a magic money man in the sky to cover their employee costs. They expect taxpaypers to eat their losses and start up costs.

They want everyone else to pay it. If you know what I mean. That is what made the Tea Party popular. Not new taxes. TAXED ENOUGH ALREADY means something and we betray it at our own political funeral.

[stephenjohnbanker]

BUMP

[sickoflibs]

RE :I think he (Cain) is looking better than the other candidates only because he has no governing track record to compare to the others.What he is showing us here in basing his campaign on 999, is that he’s not ready for prime time in my opinion and he’ll lose to Obama in a general election.
They are all meatheads to some extent or another. Romney being a rock head. I think Cain is easily defeated on 999. The economy is the central issue.
Perry is less than perfect, but he does have an economic track record in one of the largest states and he does understand exactly how the feds sink state and local economies. He despises it. His economic plan could be called the tenth amendment - giving power back to the state and cutting federal spending through cutting it’s scope of work. .”

I was trying to fit your pattern to the book reference on political birds, I found a perfect match. Perry-dactus. I pinged some experts for a second opinion.

” The less details during a campaign, the better. Learn from Obama. ”

I dont want another Obama, or Bush.

[Revolting cat!]

[SaraJohnson]

Neither do I want another Bush.

You would be an ostrich. :)

[stephenjohnbanker]

” We have capitalists who don’t even accept paying for what they expect in government services. They supported Obamacare to get out from under health care fringe benefits and they don’t want to pay for that either - like there is a magic money man in the sky to cover their employee costs. They expect taxpaypers to eat their losses and start up costs.”

Good point, Sara. Obama bought off a number of big corporations to support Obamacare, the biggest corporate sluts being G E and AARP.

However, if you check Perry’s background, he is almost as bad as Obama on a number of issues, and talk about a political slut? He has hobnobbed with ACORN & LaRaza. No thanks!

[wrhssaxensemble]

I agree. I am one of the small red dots in a blue New England mass- it’s “fun.” I had no problem with 9-9-9 when I first heard of it but after talking to my friends down south (Texas mostly) I have realized it would completely destroy the current tax system in most states down there.... now I don’t know what to think of it

[SaraJohnson]

Like I’ve said on here in detail, Perry has drawbacks. He has a long track record in office to examine and anyone with a public record is going to have done stuff to make people mad. He has strong points too which are overlooked because of his idiocy out of the gate in expressing liberal racism. (Heartless). I think it was shallow to write him off because of that given what we have to chose from: the socialist and the bankster.

Cain has no political track record. I have little doubt he has a history of hanging out with the black racists like the NAACP which is LaRaza in black. All the Corporate elite have kissed the feet of diversity racists. Cain has no public history so his skeletons will come out during the campaign. He does not have the burden of having any governing or campaign experience to examine and we are not looking for the dirt the Left will shovel out. He’s an unknown.

Cain’s a slick talker. He has a self adoring book he wrote. He’s said to be the smartest guy on the block. He has adoring followers who know little of what he’s going to do. He’s offered up good sounding solutions he can’t deliver on (999). This leaves his supporters with hope for change. Sounds familar.

As President, Cain might be easily bamboozled by foreigners, advisors and elitists because he has no experience in the bureaucatic governing and law making and politics. The Federal government is a twisted, deceiptful and complex enviornment with a million anti-American agendas. Now more than ever. We don’t have room for any learning curves and big mistakes at this point in history. Obama already demonstrated that.

We know Cain thinks Rino Kemp’s enterprise zones are a good idea to get the economy going and this shows he knows little of recent political history. Enterprise zones are the epitomy of croney capitalism, community organizers and corruption mixed with lefty race preference politics. They were an expensive failure and as I recall, ended in prison sentences.

I’m not impressed that Cain likes Romney and hates Perry. It demonstrates inexperience or intellectual dishonesty.

There is a reason the GOP Rinos hate Perry - his honest belief in the constitution’s tenth amendment. He’s likely to rock the comfortable ruling class and their “consensus.” The Rino’s super-committee with super extra-constitutional powers over elected “hobbits” and the President would be gone. Perry is talking about cutting the scope of the Federal government’s role and power rather than adding consumption taxes to the Fed pot of money to balance the budget. He does have a track record on getting in the establishment’s face (trial lawyers and academics, for example.)

I am not going to bash Cain on here out of respect for Mr. Robinson who supports him in the race. So, this is all I am saying about Cain for a while. If Cain falls back behind Romney, we need to quickly go with Perry. Perry is ten times more trustworthy than Mittens. I wish I could say Perry’s a thousand times more trustworthy. He’s not.

Thanks for touching base and I am sorry to rock the boat on Cain. I thought it was time to open an honest discussion on Cain to prepare just as I did with Perry. Romney is dead to me and I wish the same was true of Cain.

[Impy]

I’m a pigeon. And I’m flying over Rick Perry’s car right now...

[rbmillerjr]

Cain’s plan has the potential to free up American Economic Exceptionalism by:

1) Eliminating Capital Gains and Dividend Taxes...which frees up people to truly invest in America, which creates wealth and jobs. This is no small idea. This will unleash pent up investment in the real private sector. It will also broaden and deepen the investor class to working and middle class families.

2) Flat taxation on income...which allows individuals who have succeeded to be more likely to start new businesses and or, more likely to take discretionary income and invest it in great American companies.

3) Lower Corporate Taxes and Death of Loopholes and current Tax Code...... put every American business on a level playing field by having a flat tax and elimination of the Government picking winners and losers. This resonates with America after seeing the failure of government “investment” in Solyndra.

Cain is seen as an Outsider, a Leader, and a Businessman who is a Problem-Solver.

http://econus.blogspot.com/2011/10/secret-to-herman-cains-999-plan-success.html

[ferrgus]

I stand corrected. Like many folks, I was assuming 35% to be a standard corporate tax rate when it’s merely the top marginal rate.

So, to put it in real-world terms, let’s say that without the existing hidden taxes, a company could sell a loaf of bread for $1.00 and make enough profit to stay in business. Once we factor in that 22% hidden tax, the price jumps to $1.28 (22% of $1.28 is about 28 cents).

Under 9-9-9, we scrap all of the hidden taxes and tack on a 9% corporate tax, thus allowing that bread to be sold for $1.09 with the same amount of profit as before. There’d naturally be a settling-out period, but competition ensures that the price would come down to $1.09 fairly quickly.

Okay, so to recap, today we have bread selling with a shelf price of $1.28 with no federal sales tax. Under 9-9-9, the bread goes for $1.09. But then comes the federal sales tax of 9%, which comes out to about 10 cents. So now our bread costs us $1.19 under Herman’s plan.

So, maybe I’m missing something, but it seems to me that $1.19 is actually less than $1.28.

Oh, wait. I know. It’s the state sales tax that’s added on. Right?

Okay, cool. So, let’s say you’ve got a state sales tax of 10% (yeah, that’s a lot, but it makes the math easier). Under today’s system, the bread selling with a shelf price of $1.28 now has a state sales tax of 13 cents, bringing your total out-of-pocket expense to $1.41. But under 9-9-9 the state sales tax would be applied to the shelf price of the bread ($1.09), which means your state sales tax is only 11 cents. Add that to the 10 cents in federal sales tax, and your bread now costs $1.30 ($1.09 + .10 + .11).

Again, I’m thinking people would rather pay $1.30 for a loaf of bread than $1.41.