Don’t support the pizza guy. He wants more of your dough.

Herman Cain’s 999 plan is the talk of the nation.  GOP voters are going gaga over Herman Cain who has rocketed to first place in some polls for the Republican presidential nomination.  According to Cain, his 999 plan is the first step toward imposing the Fair Tax.

In other words, 999 is just a transition to a national sales tax.  Cain does not indicate what the Fair Tax percentage will be.  That is why Cain is being disingenuous in proposing his 999 plan.

Some Fair Tax advocates have called for a 23% national sales tax to replace the income tax and payroll taxes.  A 23% national sales tax will not eliminate the IRS, as Cain claims.  The Fair Tax will create an army of federal tax agents harassing businesses across the nation making sure the tax is collected, because the temptation to evade the tax will be enormous.  Does Cain support a 23% national sales tax?

In Cain’s Phase I, the 999 plan, there are several desirable proposals:  payroll tax eliminated, zero capital gains tax, estate tax abolished, and double taxation of dividends is ended.  However, there is also a 9% flat tax on corporations, a 9% flat income tax, and a 9% national sales tax, according to Cain, will raise the same amount of revenue as the current tax code.  That is not a radical proposal.  It is a status quo plan.

Although many corporations will see their taxes drop because of the 9% flat tax, low and middle income taxes will pay much higher taxes as their deductions (except for charitable contribution), exemptions, and credits will be eliminated.  A 9% national sales tax will put a dent in the living standards of low and middle-income families.  In some jurisdictions, the combined national, state and local taxes could reach 17 percent or more.

We need to cut spending, taxes, and regulations so more money can remain in the hands of workers so consumers will have more money in their pockets to purchase the goods and services they desire. Businesses need to keep more of their profits so they can expand their enterprises and create more jobs.  And we need to abolish regulations which increase the cost of doing business in America and employ armies of useless bureaucrats who harass and intimidate the wealth creators in society.

Cain states on his website, “We must get the government off our backs, out of our pockets, and out of our way in order to return to prosperity.”  That is true.  So why is Herman proposing a sales tax which hurts the living standards of the vast majority of Americans?   Does Cain know what is on his website?

As far as spending is concerned, Cain states we have to cut spending.  No kidding.  Which programs?  According to Cain, “nothing is off the table.”  In short, Cain does not have any ideas of what to cut out of the $3.7 trillion federal budget, which is more than a trillion greater than just four years ago.

There is only one plan we need to restore the economy, and that is a return to constitutional government.  Ron Paul’s plan to limit the federal government to its constitutional duties will go along way to achieving many of Cain’s alleged goals, capital formation, prosperity, and jobs.

Forget 999 and the Fair Tax.  We need a limited government Republic.  Herman Cain does not give any indication that he would abide by the constitution’s limits on federal power.  That makes him a very poor choice for president.

 

 

 

 

 

 

This entry was posted in Federal Government, Income taxes, Presidential campaign, Spending, Taxes. Bookmark the permalink.

Comments are closed.