Friday, October 14, 2011

Herman Cain and his regressive 9-9-9 tax plan

Herman Cain and his regressive 9-9-9 tax plan

POTUS wannabe Herman Cain seems to be gaining support among the GOP activists; and among those planning to vote in the caucuses/primaries.

As Gov. Perry’s numbers have declined, Cain’s have risen.

The tea partiers and evangelicals are shopping around; kicking the candidates' tires.
Bachmann is perceived as a non-winner in Nov. 2012.
Ron Paul has his libertarian army, a fervent group. But he will not get the GOP nomination.
Gingrich,Santorum, and Huntsman have not caught fire.

Mitt Romney leads the wannabes, but his Mormonism has again become an issue.
To a large percentage of the GOP activist base, his religion is a cult; not really a Christian theology.

That brings us to Cain.
He has the black minister’s evangelical persona.
He is a non-politician in a non-political age.
He is an unapologic capitalist.

He is also very conservative; extreme rightwing in his economic beliefs.

Focusing on his now famous, infamous 9-9-9 plan.
One humorist used Cain’s background as the CEO of Godfather’s Pizza and suggested 9-9-9 meant a pizza at $9.99, and delivered in 9 minutes.

But going to his website, Cain’s real proposal is outlined for scruity.
It supposedly combines a fair tax, with a flat tax.
“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%
o Gross income less all investments, all purchases from other businesses and all dividends paid to shareholders.
o Empowerment Zones will offer additional deductions for payroll employed in the zone.
• Individual Flat Tax – 9%.
o Gross income less charitable deductions.
o Empowerment Zones will offer additional deductions for those living and/or working in the zone.
• National Sales Tax – 9%.
o This gets the Fair Tax off the sidelines and into the game.”

The very wealthy, the top 5% in income/wealth, will like the flat 9%.
That’s attractive, even with eliminating most of the deductions and credits that have been encrusted into the tax code, like barnacles on a ship.

The 9% sales tax is a user tax, a value added tax.
It's a regressive idea that will be passed straight through to consumers.

And these empowerment zones.
We have been there, done that; with very little success in the urban centers.

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